The 2025 tax season has officially begun, and the IRS is expecting around 140 million people to file their returns by the April 15 deadline. With a new online tool to track refunds and other updates, here’s everything you need to know about your tax return this year.

When Will I Receive My Refund?

If you file your tax return electronically, the IRS aims to issue refunds within 21 days or less. Opting for direct deposit can speed up this process even more. However, if you file a paper return, you may have to wait up to four weeks or more for your refund. In cases where your return requires amendments or corrections, it may take additional time.

While it’s tempting to plan around receiving your refund by a certain date, the IRS advises against relying on a specific timeline, especially if you’re making major purchases or planning to pay bills.

How to Check the Status of Your Refund

You can track your refund using the IRS online tool, Where’s My Refund?. This tool is updated once a day, overnight, and will show the status of your refund 24 hours after e-filing and generally within four weeks after mailing a paper return. To use the tool, you’ll need the following information:

• Your Social Security Number (or ITIN)
• Your filing status
• The refund amount listed on your return

How Do Refunds Work?

If you’ve overpaid taxes throughout the year—whether through withholding or other means—you’re eligible to receive a refund. Even if you didn’t pay more than you owe, you may still be eligible for a refund if you qualify for refundable credits like the Earned Income Tax Credit (EITC) or the Child Tax Credit.

To claim your refund, you must file a tax return. Remember, you have three years to claim a tax refund, so don’t miss the opportunity if you qualify.

Do You Qualify for the Earned Income Tax Credit (EITC)?

The EITC is available to individuals with low to moderate incomes. To qualify, you must have less than $11,600 in investment income and meet certain income thresholds based on your filing status. For instance:

• Single with no children: Income must be $18,591 or below.
• Married filing jointly with three or more children: Income must be $66,819 or below.

To see if you qualify, the IRS provides an online EITC Assistant tool, which can help determine eligibility based on your household’s income and number of dependents.

What About the Child Tax Credit?

If you have children, you’re likely eligible for the Child Tax Credit, which can be worth up to $2,000 per qualifying child. To qualify, your child must:

• Have a Social Security number
• Be under age 17 at the end of 2024
• Be claimed as a dependent on your tax return

You can receive the full Child Tax Credit for each qualifying child if your income is below $200,000 ($400,000 for joint filers).

What’s New This Year?

The IRS has expanded its Direct File program, which allows taxpayers to file their taxes for free directly with the agency. Now available in 25 states (up from 12 last year), the program is designed for those with simple tax situations, such as those with only W-2 income. The program eliminates the need for commercial tax preparation software and has already helped taxpayers claim over $90 million in refunds for the 2024 tax year.

As tax season ramps up, keep these updates in mind and make sure you’re ready to file. Whether you’re expecting a refund or simply need help filing, these tools and updates can make the process smoother and easier.

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Eligible U.S. taxpayers could receive a stimulus check by the end of January if they missed claiming the Recovery Rebate Credit on their 2021 tax return, the Internal Revenue Service (IRS) announced. The total amount being dispersed nationwide is a substantial $2.4 billion, with payments being made either by direct deposit or paper check.

What is the Recovery Rebate Credit?

The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive one or more Economic Impact Payments (EIP), commonly known as stimulus payments. The IRS discovered that approximately one million taxpayers missed claiming this credit, despite being eligible. IRS Commissioner Danny Werfel stated, “To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning recipients won’t have to file an amended return to receive their money.”

Do Eligible Taxpayers Need to Do Anything?

No action is required for most eligible taxpayers. Stimulus payments started going out automatically in December 2024 and are expected to arrive by late January 2025. Recipients will receive their payments either by direct deposit or as a paper check, depending on how they received previous payments.

How to Check if You’re Eligible

Eligible taxpayers will receive a separate letter from the IRS notifying them about the stimulus payment. To check eligibility, you can look back at your 2021 tax return to see if you left the Recovery Rebate Credit section blank or listed it as $0.

How Much Will Taxpayers Receive?

The amount of the stimulus check varies, but eligible taxpayers could receive up to $1,400. The IRS is dispersing a total of $2.4 billion in stimulus payments to qualified recipients across the nation.

What if You Didn’t File a 2021 Tax Return?

If you didn’t file a 2021 tax return, you could still be eligible for a stimulus check if you file by April 15, 2025, and claim the Recovery Rebate Credit. According to the IRS, “Even if your income was minimal or non-existent, you must file a tax return to claim the Recovery Rebate Credit.”

Key Takeaways

• Stimulus checks are being sent automatically to eligible taxpayers who missed claiming the Recovery Rebate Credit on their 2021 returns.
• Payments will arrive by direct deposit or paper check.
• You can check eligibility by reviewing your 2021 tax return.
• If you missed filing your return, you can still claim the credit by filing before April 15, 2025.

Taxpayers who qualify for the Recovery Rebate Credit can expect the payments to arrive soon without needing to take further action.

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In the coming weeks, approximately 1 million taxpayers will automatically receive special payments of up to $1,400 from the IRS. These payments will be directly deposited into eligible taxpayers’ bank accounts or sent via paper checks in the mail.

The IRS announced that it is distributing roughly $2.4 billion to individuals who missed claiming the Recovery Rebate Credit on their 2021 tax returns. This credit was designed to provide additional relief to people who either missed one of the COVID-19 stimulus payments or received less than the full amount. The IRS discovered that many eligible taxpayers failed to claim the credit when filing their returns.

IRS Commissioner Danny Werfel stated, “Looking at our internal data, we realized that one million taxpayers overlooked claiming this complex credit when they were actually eligible.”

Who Will Receive the Special Payments?

If you are wondering whether you’ll receive a check, the odds are not in your favor. The IRS noted that most taxpayers eligible for the Economic Impact Payments (EIPs), also known as federal stimulus payments, have already received them.

These special payments will go to taxpayers who filed a 2021 return but either left the Recovery Rebate Credit section blank or mistakenly filled it in as $0 despite being eligible. The IRS is now correcting these missed credits and sending payments to those who overlooked them.

How Will the Payments Work?

Eligible taxpayers don’t need to take any action. The IRS will automatically issue the payments in late January 2025. If you are eligible, the funds will be sent directly to the bank account listed on your 2023 tax return or the address the IRS has on file for you.

The payments will vary in amount, but the maximum payment per individual will be $1,400. The IRS has posted detailed information online to help taxpayers understand eligibility and how the payment amount was determined.

What if I Haven’t Filed My 2021 Tax Return Yet?

If you haven’t filed your 2021 tax return yet, you still have time to claim the Recovery Rebate Credit. To be eligible, you must file your tax return and claim the credit by April 15, 2025—even if your income was minimal or nonexistent.

How Many Rounds of Stimulus Payments Were There?

During the pandemic, there were three rounds of stimulus payments, totaling $814 billion in relief to households. The IRS based the payment amounts on income, tax filing status, and the number of dependents.

Here’s a breakdown of the three rounds:

1. March 2020 – Up to $1,200 per tax filer and $500 per child under the CARES Act.
2. December 2020 – Up to $600 per tax filer and $600 per child under the Consolidated Appropriations Act.
3. March 2021 – Up to $1,400 per tax filer and $1,400 per child under the American Rescue Plan Act.

Conclusion

If you missed out on the Recovery Rebate Credit in 2021, the IRS is now taking steps to correct that oversight, sending out payments to eligible taxpayers. While most people have already received their stimulus checks, this latest distribution targets those who were eligible but failed to claim the credit. If you’re among them, expect the IRS to send your payment automatically by the end of January 2025, without any need for action on your part.

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