The Internal Revenue Service (IRS) is sending out another round of stimulus checks to roughly 1 million Americans who never benefited from the payments during the coronavirus pandemic.
Why Is the IRS Sending New Stimulus Checks?
Some Americans were unaware they were eligible for the payments or subsequently did not file for taxes for 2021. Each payment, officially known as Economic Impact Payments (EIP), is worth up to $1,400.
How to Know If You're Eligible for the New IRS Stimulus Checks
All qualified taxpayers who did not claim federal stimulus checks on their tax returns for 2021 will be receiving the new payments.
"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," the IRS said when announcing the new payments in December.
Stimulus checks were first approved four years ago, but those who are still entitled to the payments should see them arrive by late January 2025, according to the IRS.
What People Are Saying
IRS commissioner Danny Werfel said in a statement last month: "The IRS continues to work hard to make improvements and help taxpayers. These payments are an example of our commitment to go the extra mile for taxpayers. Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually 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."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "While many Americans may be scratching their heads over stimulus checks being distributed in 2025, this is actually a very select group of taxpayers who were eligible for the pandemic-era payments in 2021 but failed to claim them. This goes back to mistakes in filing to the IRS that left around one million Americans without a $1,400 check four years ago that should have received one. Obviously, when it comes to 'free money' from the government, it's a boost to their respective bottom lines. At the same point, for those who have been struggling with higher prices over the post-pandemic years, the payment may feel 'too little, too late.'"
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, told Newsweek: "For many, these payments will be a much-needed and unexpected financial boost. Extra money is almost always a welcome surprise. However, once Trump is inaugurated, I believe many of these programs will come under greater scrutiny, and future stimulus programs will likely be discontinued."
What Happens Next
The IRS said they sent out the stimulus payments in late December, which will be automatically deposited into bank accounts or sent by paper check, depending on what information you have on file with the IRS.
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