Big news is here for summer 2025—a $1,300 stimulus is heading to eligible Americans this August. If you missed out on the 2021 Recovery Rebate Credit, this payment could be your second chance to claim it. But to receive it, you need to know the eligibility rules, know how to file, and act fast. Whether you’re a student, a retiree, or a full-time worker, this guide walks you through everything you need to know to get your money on time.
Table of Contents
Overview
The IRS is issuing a new round of payments—averaging $1,300—in August 2025. These are not new stimulus checks, but delayed Recovery Rebate Credit payments tied to the third round of COVID-19 relief passed in 2021. This initiative will help approximately one million Americans who didn’t get the full payment due to missed filings or IRS processing issues.
| Key Details | Information |
|---|---|
| Payment Amount | Up to $1,400 (average $1,300) |
| Distribution Date | August 2025 |
| Who’s Eligible | 2021 filers who missed or underclaimed |
| Filing Deadline | June 15, 2025 |
| Official Source | IRS.gov |
| Filing Methods | IRS Free File, professional tax preparers |
Background
Under the American Rescue Plan Act of 2021, eligible Americans were supposed to receive up to $1,400 in Economic Impact Payments. Many did—but some didn’t, often because of missing tax returns or system errors. If you didn’t get your full stimulus, the IRS allowed you to claim it through your 2021 tax return using the Recovery Rebate Credit.
In 2025, the IRS is doing something rare: sending payments to taxpayers who were supposed to get them but didn’t. If you qualify, and your 2021 tax return is complete, you’re likely to receive the payment automatically.
Who’s Eligible?
Eligibility is based on your Adjusted Gross Income (AGI) listed on your 2021 federal tax return. If your income was below the threshold and you didn’t receive the third stimulus or underclaimed it, you probably qualify.
| Filing Status | AGI for Full Payment | Phase-Out Ends At |
|---|---|---|
| Single | $75,000 | $80,000 |
| Married Filing Joint | $150,000 | $160,000 |
| Head of Household | $112,500 | $120,000 |
If your AGI falls within those ranges and you didn’t get the full $1,400 back then, you’re in line for a check this summer.
Example:
Sarah, a single mother who earned $70,000 in 2021, didn’t file that year. She files before July 15, 2025, and claims the Recovery Rebate Credit on Line 30 of Form 1040. The IRS processes her return, and she receives her $1,300 payment in August 2025.
How to Claim It
Your next step depends on whether you already filed your 2021 tax return:
If You Filed Already:
- No further action is required.
- You’ll receive the payment via direct deposit or check in August 2025.
If You Have Not Filed:
- You must file your 2021 return by July 15, 2025.
- Use Form 1040 and claim the Recovery Rebate Credit on Line 30.
- File electronically using IRS Free File or through a tax professional.
Mistakes to Avoid
Missing out on this payment could be costly. Here are the most common errors that could block your payment:
- Not filing by July 15, 2025 – After this deadline, you lose eligibility.
- Entering wrong income info – This could reduce your credit or delay payment.
- Skipping Line 30 on Form 1040 – That’s where the credit must be claimed.
- Falling for IRS scams – The IRS won’t contact you by phone, text, or social media.
Is the Payment Taxable?
The good news: it’s not taxable. Stimulus checks and Recovery Rebate Credits don’t count as income. However, an increased refund might affect your eligibility for other income-based programs, like ACA subsidies or Earned Income Tax Credit calculations.
What to Expect in August
Payments will begin going out in waves starting August 2025. Most will be issued via direct deposit, but if the IRS doesn’t have your banking info, you’ll receive a mailed check.
To make sure your payment isn’t delayed:
- Log into your IRS account and confirm your mailing address and direct deposit info.
- Double-check that your 2021 tax return has been accepted and processed.
Expert Tips for Advisors
If you’re a financial planner, tax professional, or accountant:
- Identify clients who didn’t file 2021 returns—especially students, part-time workers, or retirees who thought they didn’t need to.
- Remind them of the July 15, 2025 deadline.
- Offer discounted filing services for late returns.
- Educate clients on why the payment is not considered taxable income.
FAQs
Who qualifies for the $1,300 stimulus?
Those who missed or underclaimed the 2021 Recovery Rebate Credit.
When will the payments go out?
Payments begin in August 2025.
Is the $1,300 payment taxable?
No, it’s not considered taxable income.
Do I need to file if I didn’t get 2021 stimulus?
Yes, file your 2021 return by April 15, 2025 to claim it.
Where do I claim the credit on Form 1040?
Enter it on Line 30 of the 2021 Form 1040.
