Lawmakers have introduced a new proposal that could send rebate checks to millions of Americans—this time using revenue from tariffs. Sen. Josh Hawley’s American Worker Rebate Act of 2025 aims to turn billions collected from foreign import tariffs into direct payments.
Here’s what you need to know.
What are tariff rebate checks?
Tariff rebate checks are proposed direct payments to U.S. taxpayers, funded by federal revenue from tariffs placed on foreign imports after January 20, 2025.
Rather than a one-time stimulus, the bill treats the rebate as a tax credit for the 2025 filing year, with the option for advance payment in 2024.
How much would the rebate be?
The bill sets a minimum rebate of $600 per adult and $600 per qualifying child. However, the actual amount could go higher depending on total tariff revenue and the number of eligible recipients.
Formula:
Tariff Proceeds ÷ (Eligible Adults + Qualifying Children) = Per-person Rebate
If that number is greater than $600, the higher amount would apply.
Who qualifies?
Eligible individuals include:
- U.S. residents with a valid Social Security Number (SSN)
- Taxpayers who are not dependents of another filer
- Citizens, permanent residents, or qualifying U.S. persons (not nonresident aliens)
Exclusions:
- Nonresident aliens
- Dependents
- Trusts and estates
Is there an income limit?
Yes. The rebate phases out by 5% for incomes above:
- $150,000 for joint filers
- $112,500 for heads of household
- $75,000 for single filers
How will the government deliver payments?
If passed, the Treasury will send payments electronically to bank accounts used for prior tax refunds or federal benefit payments (e.g., Social Security).
The IRS will also send a physical notice by mail after processing the payment.
What if I haven’t filed taxes recently?
The IRS can still issue a rebate if you:
- Filed taxes in 2023 or 2024
- Receive Social Security or railroad retirement benefits (via SSA-1099 or RRB-1099)
Will the IRS reduce my rebate for old debts or taxes?
No. The rebate:
- Cannot be garnished or offset for past-due federal taxes
- Won’t be reduced for student loans, child support, or other federal claims
Is this the same as a stimulus check?
No. This is not a traditional stimulus. It operates as a refundable tax credit tied to revenue from tariffs—not pandemic-related aid or government savings programs.
When could checks go out?
If passed, the bill authorizes payments to begin as early as 2024 for eligible individuals based on their 2023 returns. However, no checks will be issued after December 31, 2026.
What’s next?
The bill must pass both houses of Congress and receive the president’s signature. As of now, it remains a proposal, not a law.
Key takeaways
- Proposed $600+ rebates would use tariff revenue to support taxpayers
- Income caps apply; dependents and nonresidents are excluded
- Payments could begin in 2024, but only if Congress approves the bill
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