Stimulus Checks: Hidden Costs & What to Watch For
- A resurgence of scams promising stimulus payments is targeting taxpayers, the IRS warned this week, continuing a trend observed throughout 2025 and into February 16, 2026.
- The IRS has repeatedly stated that no additional relief payments are scheduled for distribution in 2025 or 2026.
- Scammers are employing a variety of tactics to deceive potential victims, including phishing emails, fraudulent social media posts impersonating the IRS, and text messages offering fake “tax credits”...
A resurgence of scams promising stimulus payments is targeting taxpayers, the IRS warned this week, continuing a trend observed throughout and into . These fraudulent schemes falsely advertise payments of $1,390, aiming to steal banking information and personal data.
The IRS has repeatedly stated that no additional relief payments are scheduled for distribution in or . This warning comes as similar scams persist despite the expiration of eligibility for Recovery Rebate Credits related to the economic impact payments. The deadline to claim those credits through a tax return was , with no extensions granted.
Scammers are employing a variety of tactics to deceive potential victims, including phishing emails, fraudulent social media posts impersonating the IRS, and text messages offering fake “tax credits” or “stimulus payments.” These messages typically direct recipients to click on malicious links disguised as official IRS websites. The IRS emphasizes that it does not initiate contact with taxpayers via email or social media.
According to the IRS, the agency only sends text messages with a taxpayer’s explicit permission and only collects cell phone numbers or email addresses from those who subscribe to receive agency updates. Any unsolicited messages offering stimulus funds should be treated as fraudulent. Individuals who believe they have been victims of identity theft related to stimulus payments or tax refunds are advised to complete IRS Form 14039, the Identity Theft Affidavit, to report both tax refund fraud and stimulus payment fraud.
Trump’s Proposed “Dividend” and Tariff Revenue
While the IRS is actively combating fraudulent stimulus claims, discussion around potential future relief continues. President Donald Trump has proposed a $2,000 “dividend” funded by tariffs. However, a November analysis by the Tax Foundation estimated the proposal would cost between $279.8 billion and $606 billion, depending on its design.
The Tax Foundation projected tariff revenue of $158.4 billion in and $207.5 billion in , significantly less than what would be needed to cover the payments while simultaneously reducing the federal deficit, a goal also linked to tariffs by Trump. During a cabinet meeting, Trump indicated his intention to pursue this dividend plan.
Alternative Uses for Potential Funds
For those who did receive stimulus checks in previous rounds, or who may receive funds through legitimate means in the future, financial advisors suggest several prudent uses. Spencer Savings Bank highlights several options, including paying off high-interest debt, saving for retirement, replenishing emergency funds, investing in a 529 college savings plan, and opening a Health Savings Account (HSA).
Paying off high-interest credit card debt can save individuals hundreds of dollars in future interest payments. Contributing to an IRA can provide an immediate tax deduction. Replenishing an emergency fund is particularly important given the financial strain experienced by many during the COVID-19 pandemic; experts recommend having 3 to 6 months’ worth of living expenses saved. Investing in a 529 plan offers tax-free growth and withdrawals for qualified education expenses, with potential state tax benefits. Finally, an HSA can help individuals prepare for unpredictable healthcare costs.
Other Potential, Lesser-Known Programs
Beyond widely publicized stimulus checks, several other programs may offer financial assistance. A February report indicated that some states were considering direct payments to residents. For example, one governor’s office stated that, upon passage of legislation, individuals earning up to $150,000 would receive $300 checks, and families would receive larger amounts.
The ongoing prevalence of stimulus-related scams underscores the importance of vigilance. Taxpayers should remain skeptical of unsolicited offers of financial assistance and verify any claims directly with the IRS through official channels. The combination of fraudulent activity and evolving policy proposals highlights a complex landscape for individuals seeking financial relief.