Don’t mind your tax refund. Stimulus checks are the reason why you should apply early this year

Of course you will probably get your federal tax refund sooner if you submit a file earlier the IRS begins processing returns on Feb. 12 then until the April 15 deadline. But this year you have two more reasons to start preparing in advance tax season 2020. By filing a direct deposit with the IRS, you will likely find your third stimulus check especially earlier a new incentive payment comes during the tax season. By submitting as early as possible, you can include any unpaid stimulus check the money you owe since the January 15 IRS deadline.

At least 8 million people who should have been be eligible for stimulus check-in money have not received the check they owed – and millions more may not have been received all the funds they were entitled to – because of a administrative error or other problem. Some people had problems with it custody and child support, miss money for it dependent children in general, or unintentional seizure.

Whatever your individual situation, we’ll explain how filing early can help your absence of stimulus check money (along with a tax refund, if you qualify). Then we’ll show you how to estimate your total and what to do for it the stimulus check tax reduction on your 2020 tax return. Plus, here’s everything you need to know incentive checks and your taxes for 2020, the most important facts to keep in mind and when it is time contact the IRS or set one payment trace.

Dates to Remember: When You Could Get The Missing Incentive Money And Your Tax Refund

While technically you can still file your taxes by mail and request a paper check, the quickest way to submit the money you owe electronically and have money available deposited directly into your bank account. This year, the IRS will not accept tax returns until February 12so you can submit your own files as soon as possible (April 15th is the last day to submit). The IRS says 90% of filers will receive their refund within 21 days or sooner, but it may also take even less time than that.

The IRS says it Where’s My Refund tool displays the status of your refund within 24 hours of submission, which may include confirmation that your refund has been made. From that point on, it can take one to three days for the money to be in your bank account.

Assuming seven days is the fastest you get your combined tax / incentive refund and 21 days is the longest, we’ve outlined what a difference could be if you apply sooner rather than later. (Learn more about how to calculate how much money you have in addition to your tax returns.)

Check if the IRS owes you an incentive payment

To find out if and how much money you owe from a previous round of stimulus checks, if applicable, you must first determine how much you owed for each previous payment and then subtract the amount you actually received (if applicable ). ).

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To calculate the payments you owed:

Next, you want to check your bank account where your payments were deposited to determine the amount. (If you EIP card, you can view the balance and transaction history here.) The IRS should have sent you a letter within 15 days of issuing your stimulus check, however it was issued, and that letter must state how much money you have received. (Here’s what to do if you haven’t gotten the notice from the IRS.)

If you don’t have that letter anymore, you can use the IRS’s Get My Payment tool to help you find out when you received payment. It also shows you the last four digits of the bank account it was deposited into if it was deposited directly.

There is also a form to help you calculate the amount you owe on page 59 of this pdf with instructions for 1040 and 1040-SR tax forms, but it’s a doozy to follow.

Why the IRS could owe you money from both stimulus checks

There are a variety of reasons the IRS may still owe you stimulus check fees, including:

How to Claim Your Incentive Credit on Your Taxes

The IRS requires you to complete Form 1040 or 1040-SR if you have a Refund discount on your taxes for 2020. Once you calculate the amount due, enter it on line 30 of one of these forms (see screenshot). Yes, it is that simple.

How your missing stimulus check money will reach you

If you must receive a refund from the IRS, this will include both your full refund amount and what you owe from the Refund discount. In other words, it gets bigger. However, if you owe the IRS money, your Recovery Rebate Credit will be applied to the debt. If the tax credit is more than you owe, you will be refunded the difference.

Here is what to do if you don’t submit a file, that is, you don’t have to file a tax before 2020, and you still owe an incentive check. If you have dependent children, this information about the child discount can help put more money in your pocket. And here is how to calculate your adjusted gross income, also known as “AGI.”