The IRS announced on February 16 that all checks for the first and second round of direct payments have already been issued. What should you do if you did not receive them or didn't get all the money you were entitled to?
In April 2020, the IRS and the Treasury Department began issuing the first round of economic impact payments just two weeks after the CARES Act was enacted.
The IRS sent more than 160 million stimulus checks to people across the country for a total of more than $ 270 billion.
During the second round of stimulus checks, which began in late December 2020, the day after the Coronavirus Response and Relief Supplemental Appropriations Act was enacted, the IRS issued more than 147 million checks, which totaled more than $ 142 billion.
This legislation required the second round of stimulus checks to be issued by January 15, 2021, but some of these payments may still be in the mail, en route to their recipients.
If you didn’t get a first or second payment or got less than the full amounts, you may qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim it, even if you don’t normally file.
Remember that Recovery Rebate Credit eligibility and amount are based on information for the tax year 2020, while stimulus check payments are based on information for the tax year 2019.
For the first payment of the stimulus check, the 2018 return could have been used if you did not file the 2019 return.
You can claim the Recovery Rebate Credit for any amount that you were entitled to and that did not come with the Economic Impact Payment you received in 2020 by completing line 30 of your 2020 Form 1040 or 1040-SR.
This credit will increase the amount of your tax refund or lower the amount of the tax you owe, but you do not need to complete any information about the Recovery Rebate Credit on your 2020 tax return if you received all your recovery rebate in 2020.
You will need to refer to your Notice 1444 for the payment amount you were issued to be able to include it on the worksheet that will be included in the 2020 tax return.