The IRS continues to distribute the latest round of $600 stimulus checks passed by Congress in December, but there have been widespread issues and delays in getting these checks out to Americans. There are millions of Americans who, at the end of January, had yet to receive their stimulus money, and also still others who had either not received their previous stimulus, or at least not received it in full.
Now that tax season has arrived and the IRS is preparing to begin processing returns in mid-February, it’s important to take appropriate action if you did not receive the full stimulus money you are owed.
Here are the steps you can take if you are still missing some stimulus money.
Check the status on the IRS website
Before taking any other action, your first step should be to check the IRS’s Get My Paymenttool. The tool was recently down, but when it’s functional it’s the best way to checkthe status of your payment and when you can expect to receive the stimulus money. It will also have information about the method of payment: direct deposit or mail. The method should be the same as the first stimulus payment in early 2020.
Take the Recovery Rebate Credit
If you’re unable to get answers with the Recovery Rebate tool and haven’t received your stimulus money by the time you begin your tax paperwork, there is a tool for you to use in your taxes this year that will make up for missed stimulus payments.
The Recovery Rebate Credit is new for this tax season (and this season only) as a way for you to claim any stimulus payments you did not receive, either last spring or this winter. You enter the total amount of money you received (anywhere from zero to the full amount you were owed), and based on your other tax information the IRS will determine whether you are still owed money. If so, you will receive a tax credit for the full amount owed, to be added to your tax refund.
It’s important to emphasize that this is a tax credit, not a deduction. This isn’t money that reduces your taxable income; instead, it’s money directly applied to your tax return, to reduce your liability or increase your return payment.
A family of four that did not receive either stimulus check despite qualifying would therefore receive $5800 via this credit ($1200 for each adult and $500 for each child in the first round, $600 per adult and child in the second).
The availability of this rebate credit makes it even more important than ever that you file your tax return as soon as possible this year, as the economic hardships of the last year have many Americans living tighter than ever. For more information about getting your stimulus money, contact our tax prep specialists at MCG Solutions.