Here’s how to know if you qualify for the $1,400 checks the IRS is sending in January 2025

By Joseph

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Here’s how to know if you qualify for the $1,400 checks the IRS is sending in January 2025

During the covid-19 pandemic, the federal government approved three rounds of Economic Impact Payments to help alleviate the financial hardship that many Americans were experiencing.

Better known as stimulus checks, the third and final one was authorized as part of the American Rescue Plan in March 2021, with approximately 169 million American men, women, and children eligible for up to $1,400 from the IRS.

The tax agency automatically distributed the payments based on the information they had. Those who were not on the IRS’s records were able to claim the payment via the Recovery Rebate Credit when they filed their tax returns the following year.

However, the IRS recently announced that it had reviewed internal data and discovered that one million taxpayers did not claim the credit for which they were eligible.

“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” the IRS Commissioner, Danny Werfel, said.

Those who will receive automatic payments are qualified taxpayers who filed a 2021 tax return but left the Recovery Rebate Credit data field blank or entered $0 despite being eligible for the credit.

However, there may be other taxpayers who have never filed a 2021 tax return and are still eligible.

Eligibility to receive $1,400 stimulus check payment from IRS

While most eligible taxpayers have already received the 2021 EIP or Recover Rebate, those with low or no income may not have filed a tax return for the fiscal year. Americans who are eligible for the Recovery Rebate Credit must file a 2021 tax return and claim it by April 15, 2025.

They may also be eligible for a tax refund for the year if they paid more in taxes than they owed Uncle Sam or if they qualified for other refundable tax credits, such as the expanded 2021 Child Tax Credit.

It was increased from $2,000 per qualifying child that year to $3,600 for children under the age of five by the end of 2021, and $3,000 for children aged six to seventeen.

The income requirements for the 2021 Recovery Rebate Credit, the third EIP, were identical to those for the other two stimulus checks approved by Congress. A single tax filer must earn less than $75,000, $112,500 as a Head of Household filer, or $150,000 for married couples filing jointly.

However, the third EIP saw a faster phaseout above those thresholds than the previous two rounds, with eligibility cutoffs of $80,000 for single filers, $120,000 for Head of Household filers, and $160,000 for married couples filing jointly.

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