Stimulus Update: 3 Things Taxpayers Need To Know To Get 2020 Economic Impact Payments
If you were eligible for a pandemic-era stimulus check but have not claimed it, time is running out. The IRS reminded those who may be eligible for the 2020 Recovery Rebate Credit and who haven’t yet filed a tax return for that year that the deadline is May 17, 2024.
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As the IRS explained in a March 4 announcement, the Recovery Rebate Credit is a refundable credit for individuals who did not receive one or more Economic Impact Payments, also known as stimulus payments, distributed in 2020 and 2021. The first two Economic Impact Payments were distributed in 2020 and early 2021 as an advance payment of the 2020 credit.
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Who Is Eligible?
Eligibility for the Recovery Rebate Credit requires:
Being a U.S. citizen or U.S. resident alien in the respective year
Having a Social Security number issued before the tax return’s due date
Not being a dependent of another taxpayer
The 2020 Recovery Rebate Credit can be claimed for someone who passed away in 2020 or later.
Taxpayers with income up to $75,000 ($112,500 for heads of household, $150,000 for married joint filers and surviving spouses) receive the full credit. Individuals with incomes above these thresholds receive reduced payment amounts.
How To Claim Your Credit
You claim your credit by filing a 2020 tax return. If eligible, you can access free tax preparation assistance through the Volunteer Income Tax Assistance and the Tax Counseling for the Elderly programs. Use the VITA locator tool to find your nearest site.
If you have an IRS online account, you can check to see if you have received any Economic Impact Payments, along with the total amounts.
As The Hill reported, while most people have already received the COVID-era stimulus checks, some whose income threshold didn’t require them to file taxes may have been overlooked.
In turn, the IRS said in its announcement that it will provide more detailed state-by-state information later this month for these taxpayers who may have overlooked filing and getting a refund for 2020.
The IRS stressed that there is no penalty for claiming a refund on a late-filed tax return. It recommended direct deposit as the quickest and simplest way to receive a tax refund.
Does the Stimulus Payment Count as Income?
According to the IRS, Recovery Rebate Credits do not count as income for determining eligibility for federal benefits. Nor do they affect an individual’s immigration status or their ability to secure a green card or immigration benefits.
What Is the Deadline for the 2021 Recovery Rebate Credit?
The third Economic Impact Payment, sent between March 2021 and December 2021, was an advance payment on the 2021 Recovery Rebate Credit. Eligible taxpayers who haven’t filed a 2021 tax return have until April 15, 2025, to claim the 2021 credit by filing the return.
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This article originally appeared on GOBankingRates.com: Stimulus Update: 3 Things Taxpayers Need To Know To Get 2020 Economic Impact Payments
