Last March, the IRS sent $1,200 payments to individuals who earned adjusted gross annual income below $75,000 and sent $2,400 to married couples filing taxes jointly, who earned under $150,000.
Unfortunately, not all households received the full amount they were entitled to.
If you did not get the stimulus check from March, you are eligible to claim the “recovery rebate credit” when you file your 2020 federal tax return this year. According to CNBC, the recovery rebate credit is a new to the federal income tax return process. This means that filers who did not receive the full amount of stimulus (they are entitled to) can now claim their missing money when filing their 2020 taxes.
The amount of money in your stimulus payment depends on your adjusted gross income based on the 2018 and 2019 tax years. However, your circumstances might have changed since then, especially with the rise of COVID-19. Here are three things you should consider when inquiring about the recovery rebate credit:
Changes in family
If you recently had a baby, the IRS may not know about it and you can be entitled to more stimulus. Additionally, young adults who will be filing their taxes for the first time on their own may qualify for this credit.Change in income in 2020
If you experienced a lesser income in 2020 you may be eligible for more money with the recovery rebate credit.No Stimulus Payment Received
If you did not receive the stimulus payment, whether due to processing problem at your bank or simply, missed the check, you can apply for the recovery rebate credit.
Most recently, Congress announced the second round of stimulus checks of $600, which began going out December 29, 2020. To ensure you receive what you are entitled to, contact an experienced Tax Preparer at Metro Tax Solutions.
If you have further questions, please reach out to us at info@metrotaxsolutions.com or call 347-627-6262.