![]() The Forbes Advisor editorial team is independent and objective. The amount will be based on the information sent to the IRS on forms SSA-1099 and RRB-1099. If you receive Social Security (either retirement or disability) but didn’t file a return in 2019 or 2020 because you earn too little to be required to file, you’ll also receive a stimulus check. On the other hand, if you think your adjusted gross income (AGI) increased in 2020 beyond the point of eligibility for this stimulus payment but you would benefit from the financial relief, you may want to hold off on filing until after the payments are distributed (but don’t miss the tax filing deadline-doing so means you’ll face penalties from the IRS if you owe taxes, and some states impose penalties even if you don’t owe money.) You won’t have to pay your stimulus check back to the government if you ended up making too much money in 2020 or 2021. Read more: Tax Season Will Look Different This Year. Tax Day has been pushed back from April 15 to so you have more time to file ![]() The IRS says it will continue to process plus-up payments “on a weekly basis going forward” as it receives 2020 tax returns. It’s issuing “plus-up payments” for individuals who now qualify for more money based on their 2020 tax return.įor example, if your income in 2019 was too high to receive a stimulus payment up front, but your 2020 income decreased to a level that would make you eligible to receive a full or partial payment, submit your tax return ASAP to be eligible for a plus-up payment. However, the Recovery Rebate Tax Credit won’t be a direct payment like the coronavirus stimulus checks rather, it will reduce any taxes owed or increase the amount of your tax refund.The IRS will use the most recent tax return on file (2019 or 2020). Once you calculate the correct Recovery Rebate Credit amount, you will have to enter it on line 30 of your 2021 tax return. Alternatively, if you received IRS Letter 6475 stating the amount of your third stimulus payment and any plus-up payments for the 2021 tax year, then you can use that information to claim the Recovery Rebate Credit. ![]() You will need the information in your online account to calculate your Recovery Rebate Credit when preparing your 2021 tax return. However, you can still view the details of your three stimulus checks by logging into your individual online account with the IRS. The IRS Get My Payment application portal, which enabled people to check the status of their stimulus payments, is closed. ![]() On the worksheet, you also need to provide your adjusted gross income (AGI) for that year to determine your eligibility for the third stimulus check.ĭo you know which under-the-radar stocks the top hedge funds and institutional investors are investing in right now? Click here to find out. To file the Recovery Rebate Credit worksheet, it is important that you know the amount of any third stimulus check you might have already received for you, your spouse and any dependents. Moreover, those who didn’t get the first and second coronavirus stimulus checks and haven’t yet filed their 2020 tax return can also get the money by claiming a Recovery Rebate Credit by filing a 2020 income tax return. Families that added dependents in 2021 may also be able to claim the credit. ![]() Thus, you can now claim the Recovery Rebate Tax Credit. For instance, if your income for the 20 tax years exceeded the threshold income for the third payment, but in 2021, you lost your job.Īs a result, your income dropped drastically, making you eligible for the third stimulus check in 2021. Those who didn’t previously qualify for the third payment may also claim the third stimulus check if they meet the requirements. Eligible individuals could receive $1,400, while couples filing jointly could get up to $2,800. The third stimulus check was authorized through the American Rescue Plan Act. To claim the third stimulus check, you need to file a 2021 Recovery Rebate Credit on your 2021 federal tax return. Although many people will have claimed the money since then, there is still time left for those who haven’t yet claimed the money. Last year, a report from the Treasury Department stated that about 644,705 people didn’t receive a third stimulus check. ![]()
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