A year into the pandemic, some Americans are still confused about why they received less stimulus check money than they expected, and in some cases no money at all.
If you are, there is good news: A repayment credit on this year’s tax return allows you to file your claim for the funds.
Remember, this does not necessarily mean that you will receive the exact amount you think you owe.
This is how it works: the stimulus checks issued over the past year to $ 1200 and $ 600 per person were essentially prepayments of the repayment credit.
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A section for claiming that credit has been added to this tax return – line 30 of form 1040 or 1040-SR.
On the part of the return, tax documents can start with the amount of stimulus money they have already received and still calculate funds that are payable to them. This can be done through a worksheet presented with the tax form or through software for preparing taxes.
Once the IRS has received the return, the tax agency will also charge your repayment credit, which means it can correct the amount you claim.
If there is a difference, it could lead to a ‘slight delay’ in the processing of the tax return, according to the tax agency.
For people who still do not understand why they received less money than they thought or no money at all, the process can help resolve the confusion.
In this situation, the IRS will send letters to files explaining the cause of the correction.
Some reasons why the IRS can correct the credit amount include that you have not provided a valid Social Security number, or that you are being sued as a dependent on a 2020 tax return. If a dependent was 17 years or older from 1 January 2020, they will not be eligible for payment according to the conditions of the first two checks.
Mathematical errors in the rebate calculations can also be corrected.
The recovery discount credit on this year’s tax return usually applies to the first two stimulus checks.
However, the IRS will supplement the new payments of $ 1400 in some circumstances, for example if your 2020 return shows that your income has fallen since 2019.
By submitting a 2020 tax return, you can also receive a stimulus test if the government does not keep your information on record, especially if you do not normally file returns.
It is noteworthy that federal beneficiaries – such as those receiving social security, supplementary security income or railway retirement benefits – have to get their checks automatically, even if they do not normally return them. However, if those beneficiaries need to submit information on dependent dependents, the IRS encourages them to file a tax return.
Federal tax returns are usually payable on May 17 this year.
If your income is $ 72,000 or less, you can file your tax return for free using the IRS Free File program.