TAX season is just around the corner – but you may be eligible for extra stimulus money when you file your 2020 return due to the Covid crisis.
For the 2020 tax resturn, the IRS will make good on those who missed out on stimulus paymentsCredit: Getty Images – Getty
You’ll have to claim what’s called a Recovery Rebate Credit, and the stimulus money will be added to any rebate you are due.
Individuals must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit, even if they are do not normally file a tax return.
Taxes and your direct payments were tied together for the first two rounds of Stimulus payments.
And filing a return will be critical for the third stimulus check which is currently being debated in the House – even if you don’t usually file a return for the tax year.
But for the 2020 tax resturn, the IRS will make good on those who missed out on stimulus payments.
Anyone who didn’t get a second stimulus check soon after the January 15 deadline can claim the money as a Recovery Rebate Credit.
The agency has built Rebate Recovery Credit directly into the tax return process.
And if you received money that you are no longer eligible for based on a past tax return (i.e. $500 for a dependent who is no longer a dependent on your 2020 filing) you are not required to take action to return it.
More than 100million second round stimulus checks are due to have reached eligible Americans by now.
But if you haven’t received it, or were underpaid in the first round last spring, you can still claim the money through your 2020 tax return.
The CARES Act last March provided for payments of up to $1,200 for adults and $500 per child under 17.
And the $900 billion coronavirus relief package approved in December authorized additional payments of up to $600 per adult and $600 for each qualifying child under 17.