The IRS has officially confirmed that a new $1,390 direct deposit relief payment will roll out starting in August 2025. This one-time payment is completely tax-free and aims to help low- and middle-income families manage the sting of inflation, covering essentials like housing, groceries, utilities, and medical expenses.
What Is the $1,390 Relief Payment?
Think of it as a modern version of the pandemic-era stimulus checks. It’s designed to put money directly into the hands of households that need it most. The payment:
- Amount: $1,390 (one-time)
- Taxable? No, it’s completely tax-free
- Start Date: August 2025
- Delivery: Direct deposit, paper check, or prepaid debit card (EIP card)
- Application Needed? For most people, no—the IRS will handle it automatically
The relief won’t reduce federal benefits like Medicaid, SNAP, or housing assistance, which makes it especially important for families already receiving aid.
Who Qualifies for the $1,390 Payment?
Eligibility is based on your income and whether you receive federal benefits.
Income Thresholds
- Single filers: $75,000 or less
- Married couples filing jointly: $150,000 or less
- Head of household: $112,500 or less
Federal Benefit Recipients
You can still qualify even if your income is higher, as long as you receive:
- Social Security (Retirement, SSI, SSDI)
- Veterans Affairs (VA) benefits
- Railroad Retirement benefits
Other Notes
- Families may get extra funds for dependents (details pending).
- Dependent college students and recent widows/widowers may qualify under special rules.
- Non-tax filers who receive benefits are still eligible.
How to Claim the $1,390 Payment
For most households, no action is required.
- If you filed a 2023 or 2024 tax return → Automatic
- If you receive Social Security, SSI, SSDI, VA, or Railroad Retirement benefits → Automatic
- If you don’t file taxes and don’t receive federal benefits → You’ll need to use the IRS Non-Filer Tool (launching before August 2025).
Payment Timeline
The IRS will distribute the money in phases:
- Direct Deposit: Starts August 18, 2025 (fastest method)
- Paper Checks: Begin mailing September 1, 2025
- EIP Debit Cards: Sent from September 15, 2025 in plain envelopes marked “Money Network Cardholder Services”
You’ll also be able to track your status using the IRS Get My Payment tool.
Is the $1,390 Relief Payment Taxable?
No. It won’t count as income, and it won’t reduce your eligibility for federal aid programs.
How Should Families Use This Relief?
The IRS isn’t placing restrictions, but recommends focusing on essentials:
- Rent or mortgage
- Utilities like water, gas, electricity
- Groceries and medical costs
- Childcare or education expenses
- Debt repayment
Watch Out for Scams
- The IRS will never ask for payment or fees to release your check.
- They will not text, email, or call you with links to claim it.
- Only trust updates from IRS.gov.
If you suspect fraud, report it to the IRS immediately.
What If You Don’t Receive It?
If your payment hasn’t arrived by December 31, 2025:
- File Form 3911 to trace the payment.
- Or claim it as a Recovery Rebate Credit on your 2025 tax return.
Will There Be More Payments?
For now, this is a one-time program. But if inflation continues to squeeze households, lawmakers may push for more aid later in 2025.