What are the top questions about the $1,400 automatic payments from the IRS?

• This month, 1 million taxpayers will receive automatic payments of up to $1,400 from the IRS.
• What are the eligibility criteria and frequently asked questions about being eligible?

1 million taxpayers are set to receive automatic payments from the IRS as tax filing season begins.

"Will I receive an IRS stimulus check in 2025?" is a frequently asked question, according to Google Trends data from Wednesday. The search term "IRS automatic stimulus payments" has also seen a rise in queries related to eligibility.

The payments of up to $1,400 per individual represent Recovery Rebate Credits that were not claimed by eligible people on their 2021 tax returns.

IRS Commissioner Danny Werfel stated in a December announcement that one million taxpayers missed out on claiming a complex credit they were eligible for, based on internal data.

To streamline the process and ensure timely payments, we are automatically making these payments to eligible taxpayers, eliminating the need for them to file an amended return.

Who is now eligible for a $1,400 payment?

Eligible individuals who did not claim the Recovery Rebate Credit on their 2021 tax returns will receive about $2.4 billion in automatic payments from the IRS.

The maximum payment amount is $1,400 per person or $2,800 per married couple.

A family of four, consisting of a married couple and two dependents, may be eligible for a tax refund of up to $5,600.

However, the payment amounts may vary, according to the IRS.

The full credit amount is available to individual taxpayers with up to $75,000 in adjusted gross income and to married couples who file jointly with up to $150,000 for 2021. However, the credit begins to phase out for income above those thresholds and is reduced to zero for individuals with $80,000 or more in adjusted gross income and married couples with $160,000 or more.

What do I need to do to receive an automatic payment?

According to the IRS, if you are eligible to receive a payment, you do not need to take any action.

The payments will be received by late January and will be deposited directly into the bank account specified on your 2023 tax return or sent to the address the IRS has on record.

Taxpayers will receive a separate letter notifying them of the payment.

How can I claim the money if I don't receive a check?

If you haven't received an automatic payment and believe you are eligible, you can claim the Recovery Rebate Credit by filing a 2021 tax return before the deadline of April 15.

According to the IRS, you must still file a 2021 tax return even if your income was minimal or non-existent that year.

The House Republicans are advocating for the extension of Trump's tax cuts. Over 30 million individuals could potentially utilize the IRS's free Direct File program. The IRS has announced the commencement of the 2025 tax season.

Did the stimulus checks cause inflation?

In anticipation of the stimulus checks, millions of Americans were eager to receive financial aid following the abrupt Covid-19 shutdown that disrupted their regular income streams.

Inflation increased to unprecedented levels after the 2020 and 2021 payments, as well as the enhanced unemployment and direct child tax credit checks.

Some have questioned whether the inflation spike can be attributed to the stimulus efforts.

In a recent CNBC interview, Treasury Secretary Janet Yellen stated that the "spending was imperative" to prevent individuals from losing their jobs and businesses from collapsing.

"Inflation was mostly caused by supply-side factors, according to Yellen, although it may have been slightly influenced by other factors."

The supply chain issues that arose due to the demand for goods from China and other countries resulted in a rise in prices, as stated by her.

Although core inflation slowed in December, the Federal Reserve must continue to work to achieve its 2% inflation target.