Tax Refunds and DOGE Dividend Checks: What You Need to Know

NEW YORK – U.S. taxpayers are urged to act swiftly to determine their eligibility for potential refunds that may alleviate their financial burdens. With key deadlines approaching, it’s important to stay informed.

$1,400 Stimulus Payments for Recovery Rebate Credit Applicants

The IRS has announced that it will automatically issue payments to those who failed to claim the Recovery Rebate Credit on their 2021 tax returns. This credit, intended for individuals who missed one or more Economic Impact Payments (commonly known as stimulus payments), is a refundable tax benefit.

While many eligible taxpayers have already received their credits, individuals who are yet to file their 2021 returns may still qualify for the credit. To be eligible, taxpayers must submit their returns and claim the Recovery Rebate Credit by the looming deadline of April 15, 2025. The maximum benefit available per person is $1,400, and the IRS estimates that the total for these payments could reach approximately $2.4 billion.

For those seeking further details, comprehensive information from the IRS is accessible here.

Unclaimed Refunds Exceeding $1 Billion for Tax Year 2021

The IRS has reported that over $1 billion in refunds is still available for taxpayers who have not submitted their Form 1040 for the 2021 tax year. The median refund amount is estimated to be $781, excluding the Recovery Rebate Credit and other applicable credits.

Taxpayers typically have a three-year window to file and claim their refunds. Failing to do so by April 15, 2025, will result in the forfeiture of these funds to the U.S. Treasury. The IRS encourages all eligible individuals to review their status and act promptly.

Status Update on $5,000 DOGE Dividend Checks

In a recent development, former President Donald Trump has shown support for the concept of issuing dividend checks to U.S. citizens, stemming from savings realized by Elon Musk’s proposed Department of Government Efficiency (DOGE). Trump indicated that a portion of these savings might be allocated back to American families.

According to Trump, the initiative could direct 20% of the savings from DOGE’s cost reductions to households, while another 20% would contribute to the national debt reduction. Investment firm Azoria Partners’ founder, James Fishback, elaborated on this plan during an interview, stating that if the estimated $2 trillion in savings materializes, it could result in approximately $5,000 for each taxpaying household.

“The conditional nature of the tax refund is designed to promote workforce participation since only individuals who are net payers of federal income tax in 2025 would qualify for this ‘DOGE Dividend,'” Fishback noted on his website, mydogedividend.com.

As of this moment, there have been no further updates regarding the progression of the DOGE Dividend proposal.