A $996 stimulus payment is set to be issued in 2025 for eligible taxpayers who missed out on previous Economic Impact Payments (EIPs).
This payment is part of the Recovery Rebate Credit and will be sent automatically after filing your 2024 tax return. To ensure you receive your payment on time, it’s crucial to file your taxes correctly and update your direct deposit information with the IRS.
Key Details About the $996 Stimulus Payment
| Key Information | Details |
|---|---|
| Total Payment | $996 stimulus payment |
| Who Qualifies? | Eligible U.S. taxpayers who missed past EIPs |
| Payment Method | Direct deposit or paper check |
| Filing Requirement | File 2024 tax return by April 15, 2025 |
| How to Claim? | File taxes & claim Recovery Rebate Credit |
| Official Source | IRS – www.irs.gov |
The $996 stimulus payment is not a new stimulus check but rather a way for the IRS to correct previous missed payments under the Recovery Rebate Credit.
Background on Stimulus Payments
During the COVID-19 pandemic, the U.S. government issued several rounds of stimulus checks to help Americans recover financially. However, some taxpayers never received the full amount they were eligible for due to filing errors, missed claims, or IRS processing issues.
To fix these discrepancies, the IRS introduced the Recovery Rebate Credit, which allows taxpayers to claim any missed payments on their tax return. The $996 stimulus payment in 2025 is part of this ongoing effort.
How the $996 Stimulus Payment Works
This payment is part of the Recovery Rebate Credit, which is available to those who:
- Missed out on previous stimulus payments (EIPs from 2020 or 2021).
- Did not claim their eligible amount when filing their past taxes.
- Meet income and eligibility requirements set by the IRS.
The IRS will automatically issue the $996 stimulus payment to eligible individuals once they file their 2024 tax return.
Who Is Eligible for the $996 Stimulus Payment?
To qualify for this payment, you must meet these conditions:
- Missed claiming past stimulus checks – If you didn’t receive the full amount you were entitled to in previous stimulus rounds.
- Be a U.S. citizen or resident alien – You must meet IRS residency requirements.
- File your 2024 tax return – Even if you had no income in 2024, you must file to claim the credit.
- Meet income limits – As with past stimulus checks, high earners may receive a reduced payment or none at all.
How the Payment Will Be Sent
If you qualify, the IRS will automatically issue your payment in one of two ways:
- Direct Deposit – If the IRS has your banking details on file, your payment will be sent directly to your account.
- Paper Check – If no direct deposit information is available, the IRS will mail a physical check to your registered address.
Important: Update Your Direct Deposit Details
If you’ve changed banks or moved recently, update your bank account and address with the IRS to avoid delays in receiving your payment.
How to Claim Your $996 Stimulus Payment
To ensure you receive your stimulus payment, follow these steps when filing your 2024 tax return:
Step 1: Gather Required Documents
Before filing, make sure you have:
- W-2s, 1099s, or any other income documents
- Previous tax return records (to check past stimulus claims)
- Direct deposit information (to receive the payment faster)
Step 2: File Your Taxes Online
- Filing electronically is the fastest way to process your return.
- If you earn below a certain income level, you may be eligible for free filing options.
Step 3: Claim the Recovery Rebate Credit
- Look for the Recovery Rebate Credit section on your tax return.
- Enter any missed stimulus payments from previous years.
Step 4: Double-Check for Errors
- Ensure your personal details and banking information are correct.
- Mistakes can lead to processing delays or payment reductions.
Step 5: Submit and Track Your Refund
- E-file your return for faster processing.
- Use the IRS “Where’s My Refund” tool to check your payment status.
Steps to Ensure You Get Your Payment
To avoid missing out on your $996 stimulus check, follow these key steps:
File your 2024 tax return on time – Deadline: April 15, 2025
Confirm your eligibility – Check your income and filing status
Update your direct deposit information – Avoid delays
Track your payment – Use IRS.gov tools to monitor progress
Common Misunderstandings About the $996 Stimulus Payment
1. It’s Not a New Stimulus Check
The $996 payment is NOT a new round of government checks. Instead, it is part of the Recovery Rebate Credit for taxpayers who missed past payments.
2. No Extra Application Is Needed
If you qualify, the IRS will automatically send the payment after you file your 2024 tax return.
3. The Payment Amount May Vary
While $996 is the maximum amount, some taxpayers may receive less depending on their income and filing history.
Long-Term Impact of the $996 Stimulus Payment
This payment is designed to provide short-term financial relief while ensuring that all eligible taxpayers receive the money they were owed. The Recovery Rebate Credit plays a key role in correcting past errors and ensuring fairness in stimulus distributions.
If you missed out on past stimulus payments, the $996 stimulus payment in 2025 may help you recover that money. To ensure you don’t miss out, file your 2024 tax return on time and update your banking information with the IRS.
By understanding how the Recovery Rebate Credit works, you can take the necessary steps to secure your payment and avoid unnecessary delays.
