The IRS may adjust any stimulus check money owed when you file your 2020 tax return. Here’s why
This year’s tax season has brought a new opportunity to collect unpaid funds from previous rounds of federal economic reviews.
But the amount you are claiming could be adjusted by the IRS, the agency said on Monday.
A new feature called Recovery Discount Credit allows people to claim unpaid stimulus check money that they may be missing.
To date, Congress has approved three direct payments to Americans since the Covid-19 pandemic broke out. This includes a first check for up to $ 1,200 per adult under the CARES law passed in March 2020. It then made payments of up to $ 600 per person approved in December, followed by new checks of up to $ 1,400 per person issued by the government is in the middle of the deployment.
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There may still be a way to claim missing $ 1,200 or $ 600 stimulus checks
This ensures you don’t miss any of the $ 1,400 worth of stimulus checks in the mail
The refund balance will apply to the first two checks sent as prepayment. If you received less or no money, you may be able to claim the money once you have filed your tax return.
Notably, the IRS is also using information from this season’s returns to process the new $ 1,400 stimulus checks or potentially to recharge those payments.
This year, individual tax advisors usually have until May 17th to submit their tax returns for 2020.
The refund discount credit can be claimed on line 30 of Form 1040 or 1040-SR.
Just because you entered an amount when you submitted your return, it doesn’t necessarily mean that this is the amount of money the government will repay you.
How much you get back depends on your 2020 tax return and how much money was previously sent to you for stimulus checks.
If there is an error, the IRS will calculate the correct amount due to you and continue processing the return. Admittedly, this could result in a “slight delay” in processing, the IRS said on Monday.
If so, you will receive a letter from the IRS informing you that the amount of your balance for 2020 has changed.
Your refund balance can be adjusted for a number of reasons, such as: B. because you are alleged to be dependent on someone else’s rate of return. Other factors that would result in a change include the lack of a valid Social Security number for employment, a child who was 17 years or older as of January 1, 2020, or math errors related to adjusted gross income or previous stimulus payments.
The IRS has additional guidance on its website as to why recovery discount credits may change as returns are processed. The tax authority urges applicants to review this information before contacting them with any questions.
If you have not yet submitted your tax return, you can claim the refund credit either on the worksheet that came with paper forms or through tax preparation software, indicating the starting amounts you received from the payments, if applicable.