There are still millions of people that haven’t received one or more stimulus checks issued by the government during the COVID-19 pandemic. If you’re one of the people that are waiting, you can still receive the first, second or third stimulus checks you’re missing. The stimulus was delivered via direct deposit, by check in the mail, and by prepaid debit card that were also delivered by the U.S. Postal Service.
According to the IRS, first and second stimulus payments can only be clamed on a 2020 tax return. If you’re missing the third payment, it can only be claimed on a 2021 tax return. Individuals will need to know the amount of the missing stimulus payment they’re claiming. You can find that amount by logging into your secure IRS account online. It will provide you with the amounts of all three Economic Impact Payments made to you.
You can’t claim missing first or second stimulus payments on your 2021 tax return. If you haven’t filed an income tax return for 2020, you’ll need to file one now. If you did file a return and didn’t claim the Recovery Rebate Credit, you’ll need to file an amended return.
If you filed a 2020 tax return and it hasn’t been processed yet, don’t file a second return. The IRS is still behind on processing millions of tax returns from 2020 due to errors and lack of personnel. The IRS is also expecting significant delays in processing 2021 tax returns.
People that didn’t receive their third round of Economic Impact Payments can claim it on their 2021 tax return. You must file a federal tax return to claim the funds, even if you don’t normally file or aren’t required to file. Any funds to which you were entitled will be used to reduce the amount of taxes you owe or issued as a refund.
Using online tax preparation software and filing online will help reduce errors that can delay the return and the software will also help you determine your 2021 Recovery Rebate Credit. Depending on your individual circumstances, the stimulus payment will be used to reduce the amount of taxes owed or will be issued as a refund. You can have refunds deposited to a bank account, prepaid debit card or alternative financial product. You’ll need to provide your account and routing numbers.
At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs. We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!