As the IRS prepares to distribute over one million automatic stimulus checks by the end of January 2024, new developments have emerged regarding a subsequent stimulus payment for 2025. Confirmed by recent reports, the $750 stimulus payment is designed to support American households, particularly those facing financial hardships due to inflation. Eligibility criteria include individuals earning less than $75,000 and married couples earning less than $150,000. Additionally, families will receive an extra $250 for each qualifying child under 17. Payments are set to begin on January 10, 2025, for direct deposits and January 17, 2025, for paper checks. Importantly, no application is required, as payments will be processed based on 2024 tax returns, and these payments will not be taxable. The IRS has also clarified that it will not contact individuals for personal information regarding these payments. [048d8f86]
In the meantime, the IRS continues its efforts to assist taxpayers who may have missed claiming their Recovery Rebate Credit for 2021. As previously reported, over one million individuals will receive automatic stimulus checks by the end of January 2024, with IRS Commissioner Danny Werfel emphasizing the importance of these payments in alleviating financial burdens. The deadline for filing 2021 tax returns is set for April 15, 2024, allowing taxpayers to still claim their credits if they have not done so yet. [3abfb79d]
Moreover, state-level initiatives are also in motion to provide financial relief. New York Governor Kathy Hochul has proposed Inflation Refund Checks, offering $300 for single filers earning up to $150,000 and $500 for joint filers earning up to $300,000. Colorado is implementing checks through the TABOR Amendment surplus tax refund program, where joint filers could receive up to $1,130 based on their income. These state measures complement the federal stimulus efforts, showcasing a broader commitment to economic support across various levels of government. [3abfb79d]