You could be part of the millions of Americans who have been long-awaiting for a respite from the financial whiplash of recent years is finally arriving; not in a grand legislative package, but through a series of targeted checks and automatic tax refunds deposits.
This fall, a combination of a final sweep from the IRS and enduring state-level programs is putting money back into the pockets of homeowners and those who missed out on pandemic-era aid.
It’s a financial storyline unfolding in two distinct acts: one, a nationwide effort by the federal government to close the books on 2021; the other, a persistent, annual lifeboat from state governments like New York’s, designed to tackle the ever-rising cost of living.
The IRS’s Final Chapter: The “Found Money” Initiative
In a move that feels like finding a forgotten twenty in a winter coat, the Internal Revenue Service is in the process of distributing what it calls its last round of payments linked to the 2021 Economic Impact Payments.
The story behind this money is one of bureaucratic cleanup. When the third round of stimulus checks, worth up to $1,400 per person, was distributed, the mechanism was the Recovery Rebate Credit (RRC) on 2021 tax returns. But the IRS now estimates that nearly a million taxpayers who were eligible for that credit never actually claimed it. Some left the line blank; others entered a zero by mistake.
“We’ve conducted an internal review and identified these taxpayers,” an IRS spokesperson confirmed in a recent bulletin. “Our systems show they were likely eligible, so we’re taking steps to issue these payments automatically. This is about ensuring people get the money they were entitled to.”
The agency has begun sending out these automatic payments, which started in late 2024 and are continuing into this fall. The average payment is significant, with many individuals and families receiving the full $1,400 per person. For a family of four that never claimed the credit, that could mean a surprise $5,600 deposit.
The key detail for taxpayers is that no action is required. The IRS is handling it automatically, sending payments either via direct deposit to the bank account on file from a 2023 return or mailing a paper check. The agency is also sending out notice letters to explain the deposit.
However, there was a deadline for a different group: those who didn’t file a 2021 tax return at all. They had until April 15, 2025, to file and claim their missing stimulus money. For non-filers, this was the ultimate, final call to claim what is essentially free money from the pandemic era.
The Empire State’s Answer: STAR Checks Bring Real Relief
While the federal government ties up loose ends, states are stepping into the breach with their own ongoing relief programs. The most prominent example this season is New York’s School Tax Relief program, universally known as STAR.
Unlike a one-time federal stimulus, STAR is a perennial program, but its impact is felt acutely each year when checks arrive in mailboxes just as school tax bills come due. For homeowners across New York State, it’s a crucial offset to the nation’s some of the highest property taxes.
“When that check comes, it’s not abstract. It’s real,” says Marla Baker, a homeowner in Rochester. “It means I can pay the school tax bill without having to dip into the savings I’ve set aside for car repairs or a medical emergency. It’s a breathing room check.”
The program isn’t new, but its value is more appreciated than ever. It provides a direct credit to homeowners who use their property as a primary residence and have a combined household income of $500,000 or less. The amount isn’t fixed; it varies by school district and the value of the home, typically ranging from $350 to over $1,500.
There are two tiers:
- Basic STAR: For most homeowners under the income limit, providing an average benefit of several hundred dollars.
- Enhanced STAR: For senior citizens aged 65 and older, offering a significantly larger break, often maxing out around the $1,500 range.
Governor Kathy Hochul’s office has emphasized the program’s scale, noting it returns a staggering $2.2 billion to nearly 3 million New Yorkers annually. For many, it’s the most tangible form of tax relief they receive all year.
A National Patchwork of Relief
The story of American economic relief in 2025 is not monolithic. It’s a patchwork. While New Yorkers receive STAR checks, residents of Alaska are seeing their annual Permanent Fund Dividend—a share of the state’s oil revenues—which is over $1,700 this year. Other localities, from California to Pennsylvania, have experimented with guaranteed income pilots or targeted tax holidays.
And on the federal horizon, the newly passed “One, Big, Beautiful Bill” includes provisions like a “No Tax on Tips” deduction, signaling a continued political focus on putting money back into voters’ hands, albeit through the tax code rather than direct checks.
