The $996 stimulus payment for 2025 has become a hot topic, and it’s definitely worth your attention. This financial assistance is part of the IRS Recovery Rebate Credit, aimed at helping U.S. taxpayers who missed out on previous stimulus checks during the COVID-19 pandemic.
If you’re wondering whether you qualify for this payment or how to claim it, you’ve come to the right place. This guide will walk you through everything you need to know about the $996 stimulus, including eligibility, how to apply, and important tips to avoid missing out.
What Is the $996 Stimulus Payment and Why Is It Being Issued?
The $996 stimulus isn’t a brand-new check from Congress. Instead, it’s part of the Recovery Rebate Credit program for people who:
- Didn’t receive the full amount of stimulus payments during the pandemic.
- Received less than they should have.
- Missed applying for the payments altogether.
This program allows people to claim the missed payments as a tax credit on their 2024 federal tax return, due by April 15, 2025.
Who Is Eligible for the $996 Stimulus in 2025?
You might be eligible for the $996 payment if you meet these criteria:
- U.S. citizen or resident alien.
- You did not receive the full stimulus amount in prior rounds.
- Your income meets the qualifying thresholds:
- Single filers: Under $75,000.
- Joint filers: Under $150,000.
- You file a 2024 tax return, even if you don’t normally file due to low income.
Example:
Sarah, a part-time teacher earning $20,000 annually, didn’t receive the full stimulus because her address was outdated. By filing her 2024 tax return, Sarah can now claim the missed amount as a credit, receiving up to $996.
How to Claim the $996 Stimulus: Step-by-Step Guide
- File Your 2024 Tax Return
- Deadline: April 15, 2025.
- Include Form 1040 and any supporting documents.
- Use tax software or consult a tax professional for accuracy.
- Claim the Recovery Rebate Credit
- You can find this credit on Line 30 of Form 1040.
- Enter the amount of stimulus you believe you missed.
- The IRS will validate your claim and issue a refund if approved.
- Choose Direct Deposit (If Possible)
- Opting for direct deposit speeds up processing.
- It reduces the risk of lost checks.
Where and How Will You Receive the Payment?
- Direct Deposit: The fastest method. Ensure your banking information is updated.
- Paper Check: If you don’t choose direct deposit, your check will be mailed to the address the IRS has on file.
Mistakes to Avoid
- Not filing your 2024 tax return because you think you’re not required to.
- Incorrect banking info: Make sure your account details are correct.
- Outdated address: Update your mailing address with the IRS.
- Missing the Recovery Rebate Credit section on your return.
Even if you didn’t receive any stimulus payments before, you must file a tax return to claim this credit.
Watch Out for Scams
Scammers often target people during times like these. Here’s how to stay safe:
- The IRS will never call or email you asking for personal information.
- Don’t click on suspicious links claiming to check your eligibility unless they come from a .gov or .org website.
- Report any scams to the FTC at reportfraud.ftc.gov.
State-Specific Notes
Some people confuse this federal payment with state-level programs. For example, New York’s HEAP program offers $996 in heating assistance, but that is a separate program.
Always verify whether a benefit is federal or state-based.
Best Tools for Filing Taxes in 2025
If you’re unsure how to file your taxes, consider using one of these trusted platforms:
- IRS Free File: A free option for eligible filers.
- TurboTax: Step-by-step guidance to help you file.
- H&R Block: Offers in-person or online filing.
- Credit Karma Tax: Free filing with a simple user interface.
For Financial Advisors and Tax Professionals
If you’re a CPA or financial planner:
- Review your client list for those who didn’t receive stimulus payments.
- Proactively reach out to help them file early.
- Consider hosting a workshop or webinar on how to claim the Recovery Rebate Credit.
This will help build trust with your clients and potentially save them hundreds of dollars.
Action Plan Checklist
- File your 2024 tax return by April 15, 2025.
- Review IRS guidance for the Recovery Rebate Credit.
- Gather 2020-2022 tax documents to confirm missed payments.
- Use trusted tax software or hire a professional.
- Avoid scams by visiting only .gov websites.
- Track your refund via the IRS website.
