Let’s talk stimulus checks and taxes.
Let’s talk stimulus checks. There are now 3 kinds out there. Which ones should you get, how are they related to your 2020 taxes, and how can you get yours as soon as possible?
The short story is that you can claim any money that you were owed from the first and second check on your 2020 Tax Return via the Recovery Rebate Credit. Your third check is separate from your 2020 Tax Return, and will be issued this year based on the most updated information that you’ve given the IRS.
OK, let’s dive in!
How can I get money from the first two checks that I never received?
First, let’s talk about the first two from 2020. We wrote a whole piece about them here, but here’s the summary. The first checks (issued in April 2020) were $1,200 checks with $500 for each qualifying child under age 17. So, if you were a single mom with one child, you could expect $1,200 for you and $500 for your child, for a total of $1,700. The second checks (issued in December 2020) were $600 per person and per qualifying child, so that same single mom would receive $600 for you and $600 for your child, for a total of $1,200.The stimulus checks were awarded by the government as part of Coronavirus relief and were awarded to families based on their income (as reported through their taxes) and their identification requirements (having a SSN). Most families qualify for checks. If you made less than $150K as a married family or less than $112k as a single parent you are eligible for the full payment amounts.
Remember, new parents who had a child in 2020 are eligible for $1,100 for that new baby!
On your taxes this year you will basically say, “Hey IRS, I never got this payment, or I never got both payments” and they will calculate what you are owed. You will do this by claiming the Recovery Rebate Credit on your 2020 taxes to get your money. You can look at your return (screenshot below) and look for the “Recovery Rebate Credit” to confirm that you got the correct amount.
How do I get the newest check, the $1,400 stimulus check?
The single best thing you can do to help the IRS get you your $1,400 stimulus check payment is to file your 2020 taxes and to use direct deposit. That way the IRS has your most up-to-date info on file and can send you the correct amount via direct deposit as quickly as possible.
Already filed your 2020 returns? Then, you just need to wait. We know it is hard, but there is nothing else to do to make it go faster. You can monitor the status of your stimulus check payment via the Get My Payment tool.
It is also possible that the IRS is mailing you your check if they have your address instead of direct deposit bank information. So, be sure to check your mail! The payment is issued on a prepaid visa debit card issued by MetaBank. Check out the video here.
How does the third check ($1,400) differ from the first two?
This third check is different from the first two because it can’t be claimed on your taxes; it is separate. It also will be given to more people because unlike the first two, these checks will be issued to all child and adult dependents regardless of age. (You may remember that the first two checks weren’t issued to dependents between 17 and 24 years old.) This check is $1,400 for individuals, $2,800 for couples, and $1,400 for each dependent. So, a single mom would expect $2,800 — $1,400 for herself and $1,400 for her baby.
How can I track my $1,400 stimulus check?
You can monitor the status of your payment via the Get My Payment tool on the IRS website.
Ok, I logged into the portal and I’m getting weird messages. What do I do?
If it says “Payment Status Not Available”, there could be three things going on. First, they may have not processed your payment yet. Second, they may not yet have enough information to issue you a payment. Perhaps they are waiting for your 2020 tax return! Third, you could make too much money and be inelgibile for the payment.
If it says “Need More Information”, then the IRS may have tried to send you a check and couldn’t so needs more information from you. For those people they can use the Get My Payment tool to enter their bank account information.
If you get locked out because you enter info that doesn’t match their records, you will be locked out for 24 hours and then can try again.
I already got my $1,400, but didn’t get $1,400 for my child born in 2020 yet. When will I?
You will receive it automatically from the IRS after you’ve completed your 2020 return that shows your new baby as a dependent. The timing of when you file doesn’t change your child’s eligibility for it — you could have filed in February or could even wait until May — but the sooner you file, the sooner the IRS will have the updated information, and the sooner they can award you that payment!
Think about it for a sec — your 2020 return was the first year that your child was on it. So, the IRS doesn’t yet know your child exists as your dependent. So, after your tax return is processed the IRS will look back at its records, realize the child exists, and send you the additional money you are owed. We don’t yet know how long that process will take, but as of now we believe it will be an automatic.
Which stimulus checks can I get as part of my 2020 tax refund?
The only checks you can receive as part of your tax refund are the first two.
I filed for the first two stimulus checks via the Recovery Rebate Credit on my 2020 taxes, but the IRS took my stimulus check money. Why?
As of last week the IRS was taking away people’s stimulus checks to pay off their old federal tax debts (so money they owed the IRS), but recently stopped doing that. However, the stimulus check funds (again accessed through the Recovery Rebate Credit) can still be taken away for other categories of debt, like state tax debts, overpayments of unemployment insurance benefits, and overpayments of certain federal benefits” says the TaxPayerAdvocate.
