2020 was a very difficult year that put individuals and families in need of help. The Stimulus payments provided the help. Congress enacted two stimulus payments last year. The first ($1,400) was last spring. The second ($600) was at the end of the year. The IRS set a deadline of January 15, 2021, to have all stimulus checks mailed. A number of Americans didn’t receive one or both. The government doesn’t want to add more work than is necessary so they are offering a tax credit to anyone who has not received the checks due to them. It is called the Recovery Rebate Credit.
How to claim the Recovery Rebate Credit
The IRS stated, “Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR. To determine whether you are an eligible individual or the amount of your Recovery Rebate Credit, complete the Recovery Rebate Credit Worksheet in the Instructions for Form 1040 and Form 1040-SR.”
According to the IRS
· Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, not claimed as a dependent of another taxpayer for the tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).
· You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return.
IRS Free File Program
Anyone with an income of $72,000 or less can file their federal tax return electronically for free through the IRS Free File Program. Free File is a public-private partnership between the IRS and many filing and tax preparation software providers who provide their brand-name products for free. The safest and fastest way to get a tax refund is to combine electronic filing with direct deposit.
If you qualified for a stimulus check and the IRS has sent out that payment, you should have received a letter from them within 15 days acknowledging that the payment was issued. It will be mailed to your last known address and it will detail your payment information. For the second stimulus payment, the letter is called Notice 1444-B.
The IRS advises that if you are not sure if you are missing a payment, or if you are one of the people owed money from the first stimulus payment, you can use the IRS Recovery Rebate Credit Worksheet to determine how much to ask for in the credit. The worksheet is part of the instructions for the 1040 and 1040-SR forms. The Recovery Rebate Credit appears on line 30 of the form.
After last year, everyone can use more money. Make sure you and your family get the stimulus checks that are warranted.
We at Personal Affairs Management Group specialize in helping all aspects of the day-to-day of busy professionals, families, and seniors. We have a team devised to tackle and manage concerns that many may have. If you have questions or need information about you or your loved one’s life management issues, please reach out to us. We are here to make your life simple, secure, and stress-free. Call us at 305-646-1833 or email at Corrine@theseniorsanswer.com.
