2021 Stimulus Checks – What You Need To Know
By Todd Whalen - March 30, 2021
In February, the Internal Revenue Service (IRS) announced they have completed sending all round one and round two stimulus checks. If you’re like the millions of Americans who didn’t receive that stimulus money from one or both of those checks, you’ll have to claim the payment on your 2020 income taxes by filing a Recovery Rebate Credit (more on that in a moment).
Tax Day, the deadline to file your 2020 tax returns, has been extended from April 15 to May 17. That day will come before you know it, so file your taxes as soon as you can. The sooner you file your taxes, the sooner you can receive your return and any possible stimulus owed to you. You can track your refund status within 24 hours of filing when you file your taxes online.
You Must File Taxes to Receive Stimulus Money
It’s important to note: If you owe back taxes, you won’t be able to receive a stimulus check. That means you’re leaving free money on the table. Let our tax professionals at Advanced Tax Solutions help you get caught up with the IRS so you can get the stimulus money you deserve.
Filing your taxes with your Recovery Rebate Credit form is necessary for the IRS to issue your tax refund. The Recovery Rebate Credit is a refundable credit, which can either reduce the amount of taxes you owe on your 2020 tax return or increase your refund.
How to File a Recovery Rebate Credit
Here’s how to claim your missing stimulus money by submitting a Recovery Rebate Credit with your 2020 taxes:
- File your 2020 income taxes, even if you are not required to do so.
- Confirm the amount of any first and second stimulus checks you received.
- File electronically or with a professional service like Advanced Tax Solutions to determine your 2020 Recovery Rebate Credit.
- Note: When filing for a partial check rebate, make sure you have the IRS’ calculated amount on hand. This amount is included in the letter(s) the IRS sent you confirming your payment(s).
Will the Stimulus Affect My Refund?
A common question we often hear is: “Will I owe the IRS more money if I receive stimulus checks?”
The simple answer is – no. Stimulus money will not increase the money you owe or the amount of your refund. However, you do still have to list any stimulus money you receive on your tax forms.
If you were among the millions of Americans who were laid off last year and received unemployment during that time, you do have to claim that income on your taxes.
The Bottom Line
We understand. Filling out taxes can be confusing and not the most fun activity to do. That’s why we want to help. If you would like some assistance sorting through tax issues or filing previous year’s taxes, please call 303-753-6040.
Solving tax problems with the IRS is what we do. In most cases, we can solve your problem quickly and easily. And with stimulus money on the table, there’s no reason not to let us help you square up with the IRS so you can get access to the money you deserve. Get started by stopping by our Denver office at 3801 East Florida Avenue, Suite 725, or by calling us right now at 303-753-6040.