A $1,300 stimulus payment is coming to eligible Americans in May 2025. This is a second chance for people who missed out on the 2021 Recovery Rebate Credit.
If you didn’t receive your full payment last time, you may qualify for this new round of funds. Here’s everything you need to know—eligibility, how to claim, and important deadlines.
What Is the $1,300 Stimulus?
The $1,300 stimulus coming in May 2025 is aimed at helping people who didn’t get the full amount of the 2021 Economic Impact Payment (EIP). Most people will receive around $1,300, though some could get up to $1,400 depending on their situation.
This is a second chance to claim money missed during the pandemic. If you haven’t filed your 2021 tax return yet, the deadline to claim your payment is April 15, 2025.
Key Details You Should Know
Amount: Up to $1,400 (most recipients will receive about $1,300).
Rollout Date: May 2025.
Eligibility: Based on 2021 Adjusted Gross Income (AGI).
Filing Deadline: April 15, 2025 for those who missed the Recovery Rebate Credit.
Official Source: IRS Website.
Target Group: People who missed or underclaimed the 2021 stimulus.
Filing Method: Use IRS Free File or a tax professional.
The Background: What Were Economic Impact Payments (EIPs)?
During the COVID-19 pandemic, the U.S. government sent three rounds of stimulus payments (also called Economic Impact Payments, EIPs) to help individuals financially. The third round, issued under the American Rescue Plan Act of 2021, offered up to $1,400 per eligible person.
However, some people didn’t receive the full amount due to missed filings, system errors, or other issues. The Recovery Rebate Credit was introduced to allow people to claim the missing payment on their 2021 tax return.
Now, in 2025, the IRS is sending out payments to about one million taxpayers who are still owed money. This is why headlines are talking about a $1,300 stimulus arriving in May 2025.
Who Qualifies for the $1,300 Stimulus?
Your eligibility depends on the information from your 2021 tax return, particularly your Adjusted Gross Income (AGI). Here are the income limits for different filing statuses:
Single Filers: AGI of $75,000 or less for the full amount; starts to phase out at $80,000.
Married Filing Jointly: AGI of $150,000 or less for the full amount; starts to phase out at $160,000.
Head of Household: AGI of $112,500 or less for the full amount; starts to phase out at $120,000.
Example:
Sarah, a single mother who earned $70,000 in 2021, missed claiming her Recovery Rebate Credit. Based on her income, she qualifies to receive the full $1,400 in May 2025.
How to Claim the $1,300 Stimulus
The process to claim the stimulus depends on your situation:
If You Already Filed a 2021 Tax Return:
No action is needed. The IRS will automatically send your payment via direct deposit or a mailed check.
If You Didn’t File a 2021 Tax Return:
You must file your 2021 tax return by April 15, 2025.
Use IRS Free File if your income is below $73,000.
Use Form 1040 and claim the Recovery Rebate Credit on Line 30.
Common Mistakes to Avoid
While the process sounds simple, many people make avoidable mistakes. Here are a few to watch out for:
Missing the Filing Deadline: If you miss April 15, 2025, you will lose eligibility for the stimulus payment.
Entering Income Incorrectly: Mistakes in your income can delay your payment or reduce the amount.
Not Claiming the Recovery Rebate Credit: Make sure you claim it on Line 30 of your 1040 form.
Falling for Scams: Be cautious. The IRS will never call, email, or text you asking for personal information.
Will This Stimulus Affect Your Taxes?
Good news:
The $1,300 stimulus is not taxable. However, if you receive a larger refund due to the Recovery Rebate Credit, it could affect other income-based programs, such as the Earned Income Tax Credit (EITC) or subsidies under the Affordable Care Act.
Expert Tips for Tax Professionals
If you’re a tax professional or financial advisor, here’s what you can do to help your clients:
- Contact clients who haven’t filed 2021 returns and may be eligible.
- Offer easy filing packages for clients who need to file late.
- Remind clients that the stimulus payments are not income and won’t affect tax returns.
- Make sure clients update their direct deposit information to avoid mail delays.
A little proactive work now can help your clients get the payments they deserve!
