Millions of Americans could qualify for four key stimulus payments and tax credits in 2025, but many don’t realize they’re eligible. From the Recovery Rebate Credit to the Earned Income Tax Credit, these programs offer substantial financial assistance. Here’s a breakdown of what’s available, who qualifies, and how to claim these payments before it’s too late.
1. $1,400 Recovery Rebate Credit
The IRS is issuing special payments of up to $1,400 to about one million taxpayers who missed the third stimulus payment from 2021. If you didn’t claim the Recovery Rebate Credit on your 2021 tax return, you could still get this payment.
- Who’s eligible?
- Individuals who filed a 2021 tax return but didn’t claim the credit.
- Income limits:
- Single filers: Up to $75,000
- Married filing jointly: Up to $150,000
- Head of household: Up to $112,500
- How to claim it:
If you already filed your 2021 return, you don’t need to do anything. If you haven’t filed, you must submit your 2021 tax return by April 15, 2025, to claim the credit.
2. Earned Income Tax Credit (EITC)
The EITC is a major refundable tax credit for low- and moderate-income workers. For the 2024 tax year, some families could receive up to $8,046, depending on their income and family size.
- Who’s eligible?
- Workers with an adjusted gross income (AGI) below $57,414 (or $63,414 for joint filers).
- Investment income must be below $11,600.
- How to claim it:
Even if you don’t owe taxes, you can still file a 2024 tax return to receive the credit.
3. Child Tax Credit
Eligible families can receive up to $3,600 per qualifying child by claiming the Child Tax Credit. This benefit is especially valuable for families with young children.
- Who’s eligible?
- Families with a child under the age of 18 at the end of 2021.
- Income limits:
- Single filers: Up to $75,000
- Married filing jointly: Up to $150,000
- Head of household: Up to $112,500
- How to claim it:
File a 2021 tax return by April 15, 2025, to ensure you receive the credit.
4. State and Local Relief Programs
Beyond federal assistance, some states and local governments are offering financial relief, including grants, supermarket vouchers, and utility bill assistance. These programs vary by location but can help with essential expenses.
- Who’s eligible?
- Eligibility typically depends on income and specific needs.
- How to apply:
Check with your local government’s website or office for details on available programs and deadlines.
Final Thoughts
With billions of dollars in financial assistance available, it’s important to stay informed and act quickly. Consult a tax professional if you’re unsure about your eligibility, or visit IRS.gov to get started. Don’t leave money on the table!