Within the next few weeks, approximately 1 million taxpayers will automatically receive a special payment for up to $1,400. The funds will either be sent directly into the bank accounts of eligible individuals or mailed as a paper check.
ALSO READ: SRD Grant Payment Dates 2025: Complete Schedule and Amount News
Are you going to receive this payment?
If you didn’t claim the Recovery Rebate Credit on your tax return for 2021, you probably have this payment coming. The IRS said in December 2024 that people eligible for this credit who didn’t claim it will automatically receive it.
What is the Recovery Rebate Credit?
It is a refundable credit that is issued to people for those Economic Impact Payments (EIPs), or stimulus payments, that they did not receive.
The IRS believes that most eligible taxpayers have already received their money. If you have not yet filed your tax return for 2021, you should file it soon since the deadline date is April 15, 2025.
How much people receive will depend on individual circumstances but a maximum amount of $1,400 will be paid to individuals. In total, it is estimated that $2.4 billion will be paid under this program. Go through the official IRS website for more information.
Over $1 Billion in Tax Refunds: Are You Eligible?
According to the IRS, more than $1 billion in tax refunds is still unclaimed for the tax year 2021. This refund may be available to those who have not yet filed their 2021 Form 1040 – Federal Income Tax Return.
How much tax refund do you get?
The IRS estimates that the average 2021 tax refund is $781, but this does not include any Recovery Rebate Credits or other potential credits, so you could end up getting more than this.
What if you fail to file a tax return?
As per US law, taxpayers get three years to lay their stake for tax refund claims. If they do not file a return within this time frame, the amount will go into the U.S. government treasury and will never be reclaimable.
Hence, this entails utmost importance to file the return at any given time before the deadline, i.e. April 15, 2025. You can find your eligibility for it at the IRS website.
$5,000 DOGE dividend payout – will it come true?
Earlier this year, former president Donald Trump buoyed the idea of giving Americans dividends from some of the savings made by Elon Musk’s Department of Government Efficiency (DOGE).
ALSO READ: Social Security Direct Deposit Payments of up to $5,108 to Be Sent Tomorrow or Next Week
What is the DOGE Dividend Plan?
The plan considers 20 percent in dividend to American citizens out of savings from expenditure cuts by DOGE. Another 20 percent shall go towards reducing the national debt.
Explaining the plan on Fox News to Dana Perino, Azoria Partners founder and principal James Fischbach said, “We estimate that the total savings of DOGE will be $2 trillion. If we divide 20 percent of this, that is, $400 billion, among citizens and distribute it to all American households that will pay federal income tax this year, it will give each taxpayer family a payment of about $5,000.”
“This amount will be given next summer and will have the signature of former president Donald Trump, because it would not have been possible without his policy.”
Who will get this payment?
According to this plan, only those citizens will be eligible for this dividend who would have paid federal income tax in year 2025. This is a strategy to motivate taxpayers so that more people work and pay income tax.
Will the DOGE Dividend Plan be implemented?
No formal statements have been made regarding the current status of this plan. However, Trump signed an executive order that may limit recruitment and then further downsize federal government institutions to boost government efficiency.
What to do? How to get your money from the IRS?
If you think you qualify for any of the plans listed above, take appropriate measures as soon as you can.
- Coin payment of $1,400: If you didn’t file for a 2021 tax refund, do so before April 15, 2025.
- $1 billion tax refund: If you have not filed your 2021 tax return, file “Form 1040” immediately.
- $5,000 DOGE payment: Keep an eye on government announcements for updates.
Visit the IRS website or consult a tax advisor so you can file in time.
Conclusion
American taxpayers are in line for some crucial financial assistance right now, but need to meet strict deadlines in order to avail of it. You should check eligibility requirements with the IRS for the $1,400 stimulus payment and the $1 billion tax refund. Also, remember to keep your eyes peeled for an exciting possible $5,000 DOGE dividend. With good information and quick action, one can save his financial future.
FAQs
Q. Who is eligible for the $1,400 IRS stimulus payment?
A. People who were not able to claim the Recovery Rebate Credit in 2021 and were eligible may be eligible for this stimulus payment.
Q. How will I get a $1,400 stimulus check?
A. If you are eligible, you will receive this amount directly deposited into your bank account or sent as a paper check.
Q. Do I have to apply to receive $1,400?
A. No, if you are eligible and your 2021 tax return is not filed, file it before April 15, 2025 to get this amount.