Hoping for a DOGE Dividend? 3 Times the Government Surprised Georgians With Tax Refund Checks
There’s never been anything quite like the DOGE Dividend that Elon Musk, who heads the Department of Government Efficiency (DOGE), says he wants to issue.
It’s yet to be seen whether Georgia taxpayers will end up receiving the estimated $5,000 dividend from a portion of the money the government will save by shrinking the government.
While Americans wait for further clarification on the DOGE dividend, this is an opportunity to reflect on situations in recent history when the Internal Revenue Service (IRS) surprised Floridians and Americans across the U.S. with unexpected money.
These are three instances when that very scenario happened.
Late Payment Refunds
If receiving a refund for being late paying your taxes sounds strange, imagine being among the approximately 4.7 million late-paying Americans who suddenly received a refund from the IRS.
Such payments began being issued in January 2024 for tax penalties for the 2020 and 2021 tax years.
Why should those behind on paying their taxes get a refund, you ask?
Well, the IRS takes the blame for it.
Due to the backlog of tax returns caused by the COVID-19 pandemic, the IRS temporarily halted overdue tax bill reminders in February 2022. However, they didn’t stop failure-to-pay penalties.
Luckily for such Americans in that situation, the IRS determined it wasn’t fair for such penalties to accrue, issuing penalty reliefs that averaged $206 per person.
The $18 Surprise
In August 2020, approximately 13.9 million Americans started receiving an unexpected check in their mailboxes or a deposit in their bank accounts.
After the initial elation of receiving unexpected money from the IRS, many felt deflated because the amount totaled a mere $18 on average.
So, what was the reasoning behind this $18 tax refund?
They were interest payments on tax refunds owed to them, given that the IRS had extended the tax filing deadline from April 15 to July 15. Anyone who filed a tax refund during that time and was due a refund received up to 5% interest on the refund owed.
Although $18 is objectively not a lot of money, Yahoo! Finance points out that you can get started investing in stocks with as little as $1, and a 30-year-old can take out a $250,000 life insurance policy for about $13 per month.
COVID-19 Stimulus
The COVID-19 pandemic sparked the government to issue three rounds of stimulus checks to Americans, which were officially called Economic Impact Payments.
The checks made their rounds in the following months and amounts:
- March 2020: $1,200 per income tax filer, $500 per child
- December 2020: $600 per income tax filer, $600 per child
- March 2021: $1,400 per income tax filer, $1,400 per child
In total, the IRS issued over 476 million payments that totaled $814 billion.
The stimulus checks were part of a larger effort to boost the economy and support households when many were facing unemployment and reduced hours.
One 31-year-old American turned her $1,200 stimulus payment into a nearly $1 million business.
She began the money management strategy called cash stuffing, gained fame with it on TikTok, and opened a cash stuffing business.
Electronic Refunds and Speedy Surprises
Technology has changed the way we file taxes and receive refunds. Today, many Americans file their taxes online.
Filing electronically helps speed up the process and often means that refunds are sent directly to bank accounts faster than waiting for a mailed check.
What does that mean for you?
If you’re ever due a surprise tax refund from the IRS, it’ll likely show up in your bank account without you having to do anything.
Refunds From Tax Adjustments
Sometimes, even after you file your tax return, changes in tax laws or corrections made by the IRS can lead to additional refund checks.
When the IRS finds that you overpaid because of new tax credits or corrections on your return, they’ll send you another check or direct deposit to your bank account.
A good example is when tax law changes result in new credits for energy-efficient home improvements or education expenses. If you didn’t originally claim these credits, the IRS may adjust your refund later.
Even though these extra refunds come after the main tax season, they’re a welcome surprise.
Best and Worst States to Retire in 2025
Are you hoping to settle down in a cheaper state with a better quality of life during retirement? These are the states to consider and, equally important, those you’re better off avoiding.
Best and Worst States to Retire in 2025
12 Ways Americans Can Make Big Money From AI
Like it or hate it, artificial intelligence is here to stay. Despite understandable concerns about AI, many Americans have found practical ways to generate income from it.
12 Ways Americans Can Make Big Money From Artificial Intelligence
