Politics
First two stimulus checks didn’t arrive? Here’s how Americans can get previous relief payments as credit on 2020 taxes
AMERICANS who have not yet received their first two stimulus checks can get their missing relief payments as a credit on their 2020 taxes.
As Congress works to pass a $1.9trillion Covid stimulus package – which would give taxpayers a third $1,400 check – many people are still waiting on their first two payments.
Many people are still waiting on their first two stimulus checks[/caption]
The first two Covid relief payments – worth $1,200 and $600 – can still be obtained in the form of a tax rebate[/caption]
In the 1040 or 1040-SR form, line 30 allows taxpayers to write the payment amount they are owed[/caption]
Taxpayers who wish to obtain their missing relief money can do so by claiming their stimulus check [or checks] as a tax credit.
The first two Covid relief payments – worth $1,200 and $600 – can still be obtained in the form of a tax rebate.
According to the Internal Revenue Service‘s website, the Recovery Rebate Credit section offers step by step instructions on how to submit for the tax credit.
“File electronically and the tax software will help you figure your Recovery Rebate Credit. Visit IRS.gov/filing for details about IRS Free File, Free File Fillable Forms, free VITA or TCE tax preparation sites in your community or finding a trusted tax professional,” the website explains.
“The Recovery Rebate Credit Worksheet in the Form 1040 and Form 1040-SR instructions can also help determine if you are eligible for the credit.”
In the 1040 or 1040-SR form, line 30 allows taxpayers to write the payment amount they are owed.
The “recovery rebate” tax credit allows people who didn’t receive their stimulus checks to claim either (or both) amount on their 2020 tax return, ensuring all eligible Americans receive their payments.
“You must file a 2020 tax return to claim a Recovery Rebate Credit even if you are otherwise not required to file a tax return,” the IRS noted.
‘You must file a 2020 tax return to claim a Recovery Rebate Credit even if you are otherwise not required to file a tax return,’ the IRS said[/caption]
If the combined total of the unreceived advanced payments (either or both checks) is lesser than the recovery rebate credit amount, taxpayers would be able to get the difference returned on their 2020 tax return in the form of a larger tax refund or lower tax bill.
If the checks exceeded the amount of the credit received, they won’t have to pay the difference.
Even if Americans did receive both payments, they should check if they qualify to file for a recovery rebate tax.
The eligibility rules for the recovery rebate credit are the same for the first and second stimulus checks – only that the stimulus check eligibility was determined on your 2019 tax return while the recovery rebate credit will be based on your 2020 tax return.
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The IRS revealed the quickest way Americans can receive their rebate credit is by filing their taxes electronically and having their refund direct deposited.
“Anyone with income of $72,000 or less can file their Federal tax return electronically for free through the IRS Free File Program,” the IRS said.
