If you have thethat were shipped last year, you can get a – a one-off special benefit that most people received last year in the form of an incentive check.
Sounds simple right? But just when you think you know the stimulus check situation, you don’t know. Even if you claim to miss out on stimulus money on your 2020 taxes, there are a few catches that can keep you from getting that money on time – if at all. Here’s what you need to know now about claiming incentive money on your taxes.
Claiming a Recovery Rebate credit takes extra work, even for non-affiliates
Unfortunately, your missing incentive money doesn’t just show up on your tax return. You must submit a form to claim your money as a recovery discount. We have, but the basis is:
2. When you receive your(check out our list of ), claim your Recovery Rebate Credit on 2020 Form 1040 or Form 1040-SR. The IRS offers recovery discount instructions to help you determine if you are missing a payment and for how much.
3. If you’re requesting a partial check discount, you’ll need the amount calculated from the IRS starting fromThis was called Notice 1444 for the first payment and Notice 1444-B for the second payment.
If you don’t usually have to file taxes, for example, if you receive, or if you – you should have automatically received a first and second stimulus check. But if your check never arrived (there were ), you will have to file another 2020 tax return this year and claim your Recovery Rebate Credit to claim your missing incentive money. We have instructions on this
You must wait for the IRS to process your tax return before you receive any money
After you file your taxes with your Recovery Rebate Credit form, you will have to wait for the IRS to process your tax refund. If you apply for the credit and you owe money, you will see either the amount of your tax refund increased or the amount of tax you owe reduced, depending on the amount of
The IRS says it issues most tax refunds within 21 days, but many people will receive theirs much sooner. We havebased on your situation.
If you need to apply for a tax extension, it will take longer to wait
You can cancel your tax return at any time beforeHowever, if you need more time, you can , moving your deadline to October 15th.
You can still claim missing incentive money through a Recovery Rebate Credit if you file your tax return with an extension, but keep in mind that this means your refund will be made later accordingly. For example, if you wait until October 15 to claim it, the earliest money you will get is October 22.
If you owe the IRS money, you may not get a check
Below theStarting March 2020, your first stimulus check can be used by state and federal agencies to cover child support arrears. That rule changed with the second stimulus check, which couldn’t be done like you
However, these rules are different when you are filing for missing incentive money on your 2020 tax return. For certain outstanding debts – including child support arrears and unpaid student loans – the IRS may withhold some or all of your unpaid incentive payments issued as a chargeback credit when you file your taxes. An independent taxpayer advocacy group within the IRS is working with the agency to address this issue. (Find out
If you owe the IRS money, you may be wondering, Should I go through the trouble of applying for a Recovery Rebate Credit if the agency is going to take my money? It probably still makes sense for you to do this, as it will help you pay off your debt – even if you can’t access those funds as the laws intended.
Your money can be confiscated even if you claim it because of an IRS error
There wereeven though you were eligible, including IRS errors, closed bank accounts, or changed addresses. Unfortunately, even if there was an IRS error, if you don’t have the money as one or , the IRS can claim it to cover your debts when you file it on your tax return.
This is due to a restriction that makes Recovery Rebate Credits subject to the regular rules for unpaid federal taxes and certain other debts, so the credit is treated differently from prepaid stimulus checks.
If the IRS makes another mistake with your third check, wait until next year’s tax season to sort it out
Like the first and second checks, during next year’s tax season, 2022, you can claim all of the missing money from the third check that you or your family members owe. That is far away. The best thing to do right now to make sure your third check arrives on time is to
4 Ways to Get Your Refund Faster
- If you , probably the IRS last fall. , which the IRS suggested, you need the amount of payment stated in the letter when you apply this year.
- If you can , it can mean a faster turnaround time for your refund, if you have to pay for it. Plus, any missing incentive payments this year are also tied to your taxes, so as well as a stimulus check in one payment. You are also more likely to receive your full payment with the because the IRS your about your taxes for 2019 and 2020, according to the latest proposal (PDF) – which is not yet a law.
- If you don’t have that If you set it up when you file your tax return, it could mean you see your refund sooner, especially if you combine it with electronic filing. The IRS has even asked taxpayers not to file paper returns as well, if possible, to avoid further delays.
- If you have recently moved or are planning to relocate, this is what you need to do even if it is temporary. By keeping your address information up to date, you can make sure you receive all of your incentive checks – the possibly missing ones too – and your tax refund.
For more information, check out everything we know about aand