As the economic landscape continues to evolve, many Americans are eager to understand the potential for new stimulus payments in 2025. Rumors and discussions about stimulus checks ranging from $1,500 to $4,000 have circulated widely, particularly on social media and news outlets. While the federal government has largely concluded its pandemic-era stimulus programs, some opportunities remain for unclaimed funds, and certain states are stepping in with their own relief initiatives. This article provides a comprehensive guide to the eligibility criteria, application processes, and key deadlines for stimulus payments in July 2025, addressing both federal and state-level programs.
Federal Stimulus Payments: The Recovery Rebate Credit
The federal government’s stimulus efforts, primarily through the American Rescue Plan Act of 2021, provided Economic Impact Payments (EIPs) to eligible individuals. The third round of these payments, often referred to as the Recovery Rebate Credit, offered up to $1,400 per eligible individual, including dependents, with a family of four potentially receiving up to $5,600. While most eligible taxpayers received these payments in 2021, the Internal Revenue Service (IRS) identified approximately one million taxpayers who either did not claim the credit or entered $0 on their 2021 tax returns despite being eligible.
Eligibility for the 2021 Recovery Rebate Credit
To qualify for the Recovery Rebate Credit, individuals must meet the following criteria based on their 2021 tax return:
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Income Limits:
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Single filers with an adjusted gross income (AGI) of up to $75,000, or married couples filing jointly with an AGI of up to $150,000, qualified for the full $1,400 per person.
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Heads of household with an AGI of up to $112,500 were also eligible for the full amount.
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Payments phased out for single filers with an AGI above $80,000, heads of household above $120,000, and joint filers above $160,000.
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Tax Filing Status: Individuals must have filed a 2021 federal tax return, even if they had minimal or no income. Non-filers, such as low-income individuals, seniors, or those receiving Social Security, could also claim the credit by filing a simplified return.
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Valid Identification: A valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) was required, and individuals could not be claimed as dependents on another taxpayer’s return.
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Dependents: Unlike earlier rounds, the 2021 payments included $1,400 for each qualifying dependent, regardless of age, including college students and some individuals with disabilities.
Deadline and Process to Claim
The deadline to claim the 2021 Recovery Rebate Credit was April 15, 2025. Unfortunately, as of July 2025, this deadline has passed, meaning the opportunity to claim this specific federal payment has expired. The IRS issued automatic payments in December 2024 and January 2025 to eligible taxpayers who failed to claim the credit, totaling approximately $2.4 billion. These payments were sent via direct deposit or paper check to the bank account or address listed on the taxpayer’s 2023 tax return. Taxpayers who received these automatic payments do not need to take further action.
For those who did not file a 2021 tax return, the IRS encouraged filing by the April 15 deadline, even for those with little or no income, using tools like the IRS Free File program or the Non-Filers Portal. Since this window has closed, no new federal stimulus payments related to the 2021 Recovery Rebate Credit are available in July 2025.
State-Level Stimulus and Rebate Programs
While federal stimulus payments have largely concluded, several states are offering their own financial relief programs in 2025, often funded by budget surpluses or specific tax initiatives. These state-level payments, sometimes referred to as “stimulus checks,” vary widely in amount, eligibility, and distribution timeline. Below are some notable programs that may provide payments in or around July 2025.
New Jersey: ANCHOR Program
New Jersey’s Affordable New Jersey Communities for Homeowners and Renters (ANCHOR) program has been revamped for 2025, combining benefits like the Senior Freeze and StayNJ into a single application (PAS-1). This program offers up to $6,500 in combined relief for eligible residents, with payments potentially starting as early as July 2025.
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Eligibility:
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Homeowners with incomes up to $150,000 (or $250,000 for certain benefits) and renters with incomes up to $150,000.
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Must have resided in New Jersey for the entire tax year and paid property taxes or rent.
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Applications require a valid SSN or ITIN and proof of residency.
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Application Process: The PAS-1 application process begins in March 2025, with payments distributed starting in July. Residents should check the New Jersey Division of Taxation website for updates and deadlines.
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Payment Amount: Up to $1,500 for homeowners and $450 for renters, with additional benefits for seniors or low-income households.
New York: Inflation Refund Proposal
Governor Kathy Hochul has proposed an Inflation Refund as part of New York’s 2026 fiscal year budget, which could deliver approximately $3 billion to 8.6 million taxpayers. If approved, payments would be distributed in 2025, potentially around July, pending the state budget’s approval by April 1, 2025.
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Eligibility:
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Single filers earning up to $150,000 annually qualify for $300.
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Joint filers earning up to $300,000 annually qualify for $500.
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Must have filed a 2024 state tax return.
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Application Process: Payments are expected to be automatic for eligible taxpayers who file their 2024 taxes, with no separate application required.
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Payment Amount: $300 for single filers and $500 for joint filers.
Alaska: Permanent Fund Dividend (PFD)
Alaska’s Permanent Fund Dividend, funded by oil revenue, provides annual payments to residents. For 2025, the payment amount is set at $1,702, with distributions expected in the second half of the year, potentially aligning with July.
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Eligibility:
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Must have resided in Alaska for the entire calendar year prior to application (2024).
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Intent to remain a permanent resident of Alaska.
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No felony convictions or incarceration in the past 12 months.
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Application Process: Applications are typically submitted in the first quarter of the year, with payments issued automatically to approved applicants.
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Payment Amount: $1,702 per eligible resident, including children.
Michigan: Working Families Tax Credit
Michigan’s expanded Working Families Tax Credit, effective since February 2024, has already benefited over 700,000 families, with payments averaging $836. While most payments have been distributed, some eligible households may receive funds in 2025, depending on state budget allocations.
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Eligibility:
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Low- to moderate-income families who qualify for the federal Earned Income Tax Credit (EITC).
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Must have filed a 2024 Michigan state tax return.
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Application Process: Automatic for those who file state taxes and claim the EITC.
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Payment Amount: Varies, averaging $836 per household.
Rumors of New Federal Stimulus Payments
Social media and unverified sources have fueled speculation about new federal stimulus checks in 2025, with amounts ranging from $500 to $4,000. Notable claims include a proposed $5,000 “DOGE Dividend” tied to the Department of Government Efficiency (DOGE), led by Elon Musk, and a rumored $2,000 fourth stimulus check. However, as of July 2025, these proposals lack official confirmation.
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DOGE Dividend: Proposed by James Fishback, this initiative suggests distributing 20% of DOGE’s projected $2 trillion in government savings as a $5,000 refund per tax-paying household. President Donald Trump expressed support for the idea in February 2025, but it requires Congressional approval and is not expected to materialize before July 2026, if at all.
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$2,000 Fourth Stimulus Check: Claims of a $2,000 stimulus payment in 2025 have been debunked by the IRS and U.S. Treasury, with no new federal stimulus programs approved. Any mention of such payments should be treated with skepticism, as they may stem from misinformation or scams.
How to Avoid Scams
With the buzz around stimulus payments, scams are rampant. The IRS does not contact taxpayers via text, email, or social media to request personal information or distribute payments. To protect yourself:
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Verify information only through official IRS channels (IRS.gov) or state tax agency websites.
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Be cautious of unsolicited messages claiming to offer stimulus funds.
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Use secure platforms like the IRS Online Account or the “Where’s My Refund” tool to check payment status.
Steps to Maximize Financial Relief in 2025
To ensure you receive any eligible payments:
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File Your 2024 Taxes Early: Many state programs, like New Jersey’s ANCHOR and New York’s Inflation Refund, rely on recent tax filings to determine eligibility.
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Check State-Specific Programs: Visit your state’s revenue or tax department website for details on local relief initiatives, application deadlines, and eligibility criteria.
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Update Contact Information: Ensure your bank account and address are current with the IRS and state agencies to avoid delays in payment delivery.
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Monitor Official Announcements: Stay informed through IRS.gov, Treasury.gov, or reputable news outlets for updates on new stimulus proposals.
In Summary
While the opportunity to claim the federal 2021 Recovery Rebate Credit has expired, several state-level programs offer financial relief in July 2025, with payments ranging from $300 to $6,500 depending on the state and program. New Jersey, New York, Alaska, and Michigan are among the states providing significant support, with eligibility tied to income, residency, and tax filing status. Rumors of new federal stimulus checks, such as the $5,000 DOGE Dividend or $2,000 fourth stimulus, remain unconfirmed and should be approached cautiously. By staying informed, filing taxes promptly, and verifying information through official channels, Americans can maximize their chances of receiving available financial relief in 2025.
