A year after the pandemic, some Americans are still confused as to why they have received less money for stimulus checks than expected and, in some cases, no money.
If it’s you, there’s good news – a recovery bonus credit on this year’s tax return will allow you to file your claim for those funds.
Remember that this does not necessarily mean that you get the exact amount you think you should pay.
Here’s how it works: Stimulus checks issued over the past year for up to $ 1,200 to $ 600 per person were basically prepayments of the recovery bonus credit.
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A section to claim that credit has been added to this year’s tax return forms: line 30 of forms 1040 or 1040-SR.
In this part of the return, taxpayers can start with the amount of incentive money they have already received and calculate the funds that correspond to them. This can be done through a spreadsheet provided with the tax form or through the tax preparation software.
Once the IRS receives the return, the tax agency will also count your recovery bonus credit, which means it can correct the amount you claim.
If there is a discrepancy, this could lead to a “slight delay” in processing the return, according to the tax agency.
However, for people who still don’t understand why they received less money than they thought they should pay or didn’t have, the process could help resolve the confusion.
The IRS will mail letters to declarants in this situation to explain what motivated the correction.
Some of the reasons the IRS may correct the amount of credit include not providing a valid Social Security number or if you were claimed as a dependent on a 2020 tax return. If an employee was 17 or older as of January 1, 2020, you will not be eligible for a payment, under the terms of the first two checks.
Mathematical errors in rebate calculations could also lead to a correction.
This year’s statement recovery bonus credit generally applies to the first two stimulus checks.
However, the IRS will possibly recharge the new $ 1,400 payments in some circumstances, such as if your 2020 return shows that your income has dropped since 2019.
Filing a tax return for 2020 will also allow you to receive a stimulus check if the government is not aware of your information, especially if you do not normally file tax returns.
It should be noted that federal beneficiaries, such as those receiving Social Security benefits, Supplemental Security Income, or railroad retirement, should receive their checks automatically, even if they do not normally file returns. However, if these beneficiaries are required to file information on eligible dependents, the IRS encourages them to file a tax return.
Federal tax returns are generally due on May 17 this year.
If your income is $ 72,000 or less, you can file your tax return for free through the IRS Free File program.