You might have some good luck in the next few weeks. Your wallet may have been stretched thin by all the holiday celebrations in the last month. The IRS may send you a late Christmas present. A little over a million tax payers will get payments of up to $1,400 in the next few weeks. The money will either be sent directly to your bank account or sent to you by check in the mail if you qualify.
$1,400 if you match this qualifying criteria
The IRS has announced it will distribute approximately $2.4 billion to taxpayers who overlooked claiming the Recovery Rebate Credit on their 2021 tax returns. This credit was available to those who:
- Missed a COVID stimulus payment
- Received less than the full amount of their stimulus payment
But on Friday, the IRS said that many people who were eligible for the credit had not claimed it, even though they were supposed to. “By looking at our own data, we found that a million taxpayers forgot to claim this complicated credit when they were eligible,” said Danny Werfel, commissioner of the IRS.
It is likely that you are not on the list of people who are eligible for the payment, since most of those people got it back in 2021. The payment will only go to the few people who filed a 2021 tax return but either left the Recovery Rebate Credit field blank or put $0 in it, even though they were eligible for the credit.
How will I know if I am eligible?
Eventually, the IRS will send you a letter to let you know if you are eligible to get the payment. Actually, you do not need to do anything else because the IRS has already checked to see who is eligible.
The payment will be automatically sent back to you once they have found tax payers who are eligible to receive it because they missed the 2021 Recovery Rebate Credit. It is expected that payments will have been sent out this month.
You might still be able to get the rebate even if you never filed your 2021 tax return. The IRS says that if you are in this group, you need to file a tax return and claim the Recovery Rebate Credit by April 15, 2025, even if you did not make much or any money from work, business, or other sources.
New changes for economic policy in 2025
There will likely be big policy changes next year because of the ongoing debates about the future of Social Security. Because lawmakers are worried about the program’s long-term viability, especially as the population ages, they may look into changes like raising the retirement age or changing benefits. These talks are likely to pick up speed when Trump takes office, since his administration is expected to focus on fixing budget problems.
The new Fairness Act is an important piece of legislation that aims to make sure that Social Security benefits are distributed more fairly, especially for workers with lower incomes or nontraditional career paths.
Along with changes to Social Security, the Trump administration is likely to make other changes to the economy, such as keeping tariff policies in place.
Tariffs like these are likely to have an effect on trade, especially with China and other important global partners. This could make prices go up for both consumers and businesses.
As part of its larger economic plan, the administration may also put a high priority on tax cuts and less government regulation.
These changes could have a big impact on both the U.S. economy and trade around the world. This makes 2025 an important year for U.S. economic policy. Besides these changes, there are also plans to change the future of stimulus payments while Trump is in office.
Also See :- Stimulus Check: How to access the $800 for low-income citizens