The IRS is encouraging those who have not received their stimulus checks, or who were given less than they anticipated, to file a federal tax return to recoup what's missing. If you filed your return before February 18th and are due the recent $1,400 stimulus payment, submitting that form to resolve any outstanding taxes may be an effective strategy. Filing a return can also help if you're missing either or both check 1-2 of $1,200 or $600 each. Tax payers who normally do not file their taxes must complete a little extra paperwork in order to be eligible for the $1,400 per family tax refund. If you don't typically file a federal return, your stimulus check may be automatically deposited into your bank account. However, if either you or an eligible dependent is receiving funds from other government programs like Social Security or unemployment benefits, you will need to submit extra information.
The stimulus checks are advanced payments of a tax credit.
Because of this, line 30 of Forms 1040 or 1040-SR are so filers can start with the amount of stimulus money they already received and calculate any more funds which they are due. This is process is made easier with the professional service and guidance of a tax professional. When your return is received by the IRS, your recovery rebate will be calculated for your return. Discrepancies lead to delays from the IRS so the more experienced the person preparing your paperwork, the better.
Basic eligibility for each stimulus check was having an adjusted gross income up to $75,000 for singles, $112,500 if you're filing as head of household or $150,000 if married and filing jointly.
For more information, schedule a free consultation with us at Southwest Tax Solutions (915-300-0500).