Why you need to confirm you were sent your full $600 stimulus check before filing your 2020 tax return
THIS is why you need to confirm you were sent your full $600 stimulus check before filing your 2020 tax return
Despite the Internal Revenue Service having stopped the distribution of Covid-19 relief payments to Americans, all hope is not lost for anyone still waiting for their money.
For anyone who hasn't received the relief check, the IRS will be able to add the missing stimulus payment to your tax refund check.
The first round of economic relief was $1,200- or "$2,400 if married filing jointly for 2020 plus $500 for each qualifying child you had in 2020," the IRS states.
The second payment was $600 – or "$1,200 if married filing jointly for 2020 plus $600 for each qualifying child you had in 2020."
In order to ensure the missing payment will be received through your tax refund, the IRS needs you to use the Recovery Rebate Credit worksheet.
The Recovery Rebate Credit is "a tax credit against your 2020 income tax" which will likely "increase the amount of your tax refund or decrease the amount of the tax you owe," according to the IRS.
Anyone who has received their stimulus checks do not need to fill out their information via the Recovery Rebate Credit.
The rebate worksheet will help taxpayers learn how much they will receive.
According to the IRS, the amount of awaited-money needs to be written in your 2020 tax return on line 30.
Anyone who didn't receive the full Economic Impact Payment may be able to use IRS Free File to claim the Recovery Rebate Credit.
"IRS Free File lets you prepare and file your federal income tax online for free," the IRS explains.
"File at an IRS partner site with the IRS Free File Program or use Free File Fillable Forms. It's safe, easy and no cost to you."
The website also offers two different options – one for taxpayers with an income of $72,000 and below, and the other for anyone who makes more than $72,000.
Meanwhile, another round of economic relief could be just days away as the Senate will start debating "robust" Covid legislation next week.
The US Senate next week will begin debating a coronavirus aid bill and proceed even if Republicans are not on board, Senate Majority Leader Chuck Schumer said Thursday.
Democrat Schumer told representatives in a Senate speech there was the need for a “bold” and “robust” bill in light of current economic conditions.
He said slimming down package "would be irresponsible and hurt millions of people", reported POLITICO.
Schumer also referred to “passing a budget resolution”, which unlocks reconciliation and allows Democrats to go around Republicans to get the bill passed, if that is required.
The message of hope from Schumer comes after House Speaker Nancy Pelosi yesterday confirmed new stimulus checks will be rolled out speedily to meet the “urgent” need for relief.
Pelosi indicated extra pressure is being placed on members to get the relief package approved so the new $1,400 stimulus checks can be distributed to the millions struggling from the economic damage of the coronavirus pandemic.
As part of his $1.9trillion coronavirus relief plan, president Biden proposed a third round of stimulus checks to help millions struggling from the economic fallout of the pandemic.
The $1,400 stimulus check will be added to the $600 checks previously approved by Congress.
Once the bill is passed by Congress, it must be signed by Biden before the IRS distributes the checks.
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