Stimulus Payment Amounts and Qualification

Eligible for a Stimulus Payment? 

As part of continuing efforts to help taxpayers, the Internal Revenue Service announced plans to issue automatic payments later this month to one million eligible taxpayers who did not claim the Recovery Rebate Credit on their 2021 tax returns. 

The IRS announced the special step after reviewing internal data showing many eligible taxpayers who filed a return but did not claim the credit. The Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments (EIP), also known as stimulus payments. 

No action is needed for eligible taxpayers to receive these payments, which will go out automatically in December and should arrive in most cases by late January 2025. The payments will be direct-deposited automatically or sent by paper check; eligible taxpayers will also receive a separate letter notifying them of the payment. 

Most taxpayers eligible for EIPs have already received their EIP or Recovery Rebate Credit. 

These December payments for the 2021 Recovery Rebate Credit are going only to those taxpayers whom the IRS demonstrates qualifies for the credit. Qualified taxpayers are those who filed a 2021 tax return, but where the data field for the Recovery Rebate Credit was left blank or was filled out as $0 when the taxpayer was actually eligible for the credit. 

Taxpayers who qualify but did not claim any portion of the credit on their 2021 tax return should receive these payments by late January 2025. The payment will be sent to the bank account listed on the taxpayer’s 2023 tax return or to the address of record. 

As the 2025 tax filing season approaches, the IRS is committed to helping taxpayers understand and claim the credits and deductions for which they are eligible including Coronavirus tax relief. Many taxpayers are unaware of tax credits and deductions for which they are eligible or face other barriers keeping them from claiming them. The IRS will be reminding taxpayers about these credits, including the Earned Income Tax Credit, during the 2025 filing season. 

As with EIP2, U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayer’s return generally qualify for EIP3. Married couples filing jointly with only one SSN can qualify too, but only the spouse with the valid SSN will qualify for a stimulus payment (dependents qualify, too). For example, a married couple with two kids would qualify for up to $4,200 ($1,400 x 3) if only one spouse has an SSN.

Nonresident aliens, adult dependents, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP3.

A missing EIP3 can be claimed when you file your taxes via the Recovery Rebate Credit.