STIMULUS PAYMENTS AND TAX RETURNS

With the economic stimulus payments that were distributed in 2020, many questions have arisen.

What happens if I didn’t receive my payment? What if I only received partial payment? What if I received it all? We will address what you should do for each of these scenarios as we head-dive into tax season.

What amount should I have received?
The first economic impact payment was broken down as follows:

• $1,200 per adult earning up to $75,000
• $2,400 for couples earning up to $150,000
• $500 per child under the age of 17

The second impact payment gave $600 to eligible taxpayers. Eligibility is based on 2018 or 2019 tax year information.

I never received one or both of my payments. What should I do?
According to the IRS website, all payments have been sent. If you never received your payment via direct deposit or check, you can use the IRS Get My Payment portal that can give you insight into your payment status.

I am missing a portion from the first two payments. How can I recover what I am owed?

If your payment was not deposited directly into your account or you have not yet received a check, you may qualify for the Recovery Rebate credit that will be filed with your 2020 tax return. For more information about the rebate, you can visit this link on the IRS website.

Whether you are missing a part or all of your payments, you can claim the Recovery Rebate Credit when you file (or e-file) your return. Your tax preparer can help you to determine if you qualify.

Once this is filed, your credit will be issued as part of your 2020 tax refund and will not be sent separately.

It’s important to inform your tax preparers of the amount you received from each payment. While these payments are not taxable, you will want to receive the full amounts you are entitled to.