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DOGE dividend 2025 update: Are you eligible for a $5,000 stimulus refund check?

The proposed DOGE refund check could potentially provide a financial boost, but it will be limited to net-income taxpayers—those who pay more in taxes than they receive back.

Lower-income Americans, especially those with an income below $40,000, are expected to be excluded from the refund, as they typically do not pay federal income taxes. Photo: LR composition/NBC News
Lower-income Americans, especially those with an income below $40,000, are expected to be excluded from the refund, as they typically do not pay federal income taxes. Photo: LR composition/NBC News

The possibility of a $5,000 stimulus check is generating buzz, with many Americans wondering whether they will be eligible for a payout through a new initiative linked to cost-saving measures. As debates continue on government spending and its impact, attention has turned to the details surrounding this proposed refund.

With rising tariffs and uncertain economic conditions, the concept of receiving a refund from the savings of government efficiency has caught the interest of citizens, including the specifics of who qualifies and what steps must be taken.

Will there be DOGE dividend check in 2025?

Amid rising tariffs and the ongoing trade war, many Americans are closely watching the stock market and their 401k balances, wondering if a $5,000 stimulus check is coming their way through DOGE’s savings.

Elon Musk recently addressed questions about the potential DOGE dividend check for Americans. At a rally in Wisconsin, Musk explained that the decision on whether to distribute the refund would depend on the president and Congress’ approval of the cost-saving measures.

As government spending becomes more efficient and reduced, Musk stated that inflation taxes would also decrease, making taxpayers better off. "We've made progress, but there's still much more work to do," he said.

President Trump expressed in February that he would consider issuing $5,000 stimulus checks as part of a "DOGE dividend," funded by 20% of the savings identified by Musk's Department of Government Efficiency (DOGE). The idea, suggested by James Fishback, CEO of Azoria investment firm, was that the dividend would be a tax refund, distributed to taxpayers from DOGE’s savings. Musk responded positively, saying he would check with the president.

Musk and DOGE's team recently discussed their plan to reduce the deficit by $1 trillion, cutting wasteful government spending and fraud, with DOGE saving approximately $130 billion. These savings would translate to about $800 per taxpayer. Fishback has expressed optimism about a bill being introduced soon to make Trump’s vision for DOGE law.

The proposal for the DOGE dividend, which would exclusively be funded by savings from DOGE, is aimed only at net-income taxpayers. It differs from previous stimulus checks, which were sent indiscriminately. Fishback emphasized that the refund would go to households that pay federal income tax, not to lower-income individuals who do not.

According to Fishback, many low-income households received 25% to 30% of their annual income from the previous stimulus checks, but this DOGE dividend would target those who have a higher propensity to save. The refund is only for households above a certain income level.

Fishback summed up the proposal simply: "Let’s take 20% of the money saved and send it back to the taxpayers who sent it to D.C. in the first place."

The potential DOGE dividend would be issued per household, rather than individually, and would be available to those who meet the necessary income tax criteria, including Social Security recipients.

How to qualify for a DOGE check?

The proposed refund would be distributed only to households that are net-income taxpayers—those who pay more in taxes than they receive back. Lower-income Americans would not be eligible for this refund, as reported by various sources. According to Pew Research Center, most individuals with an adjusted gross income below $40,000 pay little to no federal income tax.

This DOGE refund check would be issued to households as a whole, rather than individual taxpayers, and would include those who receive Social Security benefits, as long as they meet the income tax eligibility requirements.

What is DOGE?

The Department of Government Efficiency (DOGE), formerly known as the U.S. DOGE Service Temporary Organization, is a project initiated by President Trump and led by Elon Musk, a special government employee.

DOGE's mission focuses on reducing federal spending, eliminating unnecessary regulations, and modernizing federal technology and software to improve government efficiency and productivity. When it was first launched, DOGE aimed to save up to $2 trillion annually. To date, DOGE reports having saved $140 billion.