The Coronavirus, or COVID-19, has caused financial hardship for millions of Americans. So far two Economic Impact Payments have been issued during the 2020 fiscal year.
Unfortunately, an estimated 12 million Americans have not received their economic stimulus checks in the full amount.
If you are still waiting to receive money from the government, you can claim what’s known as a Recovery Rebate Credit on your 2021 tax return.
Here’s how you do it:
1. Make Sure You Are Eligible To Receive Payments
The first step in claiming your Economic Impact Payment (EIP) is confirming your eligibility.
If you meet the requirements, you can move on to the next step.
If not, you’ll want to address those issues in case another round of stimulus payments is approved.
2. Prepare Your Tax Return Documents
If you have been issued a W-2 or 1099, you should have these documents ready to use as a reference.
These contain important information that you can use to fill out your tax return.
3. Begin Your 2020 Tax Return
There are many ways you can start filling out your 2020 tax return form.
Midwest Finance offers fast and affordable tax preparation services if you need help.
The following steps are included in the tax filing process, so you will need to begin your tax return before you can continue.
4. Report Any Changes To Your Address
If you recently moved or are planning to move soon, you should report your new address to the IRS when you file your taxes.
This will ensure that your stimulus check is mailed to the correct location.
Alternatively, you can sign up for direct deposit when you file your tax return, which will allow the IRS to send you your tax credit electronically.
5. Fill Out the Recovery Rebate Credit Worksheet
The Recovery Rebate Credit Worksheet allows you to report how much money you have received from the government compared with how much you are eligible to receive.
If there is any difference between the two numbers, that difference will be passed along to the IRS.
This can apply to both the first and seconds round of stimulus payments.
6. Complete Your Return and Receive Your Tax Credit
Once you have updated your address and completed the Recovery Rebate Credit Worksheet, you’re almost finished.
From here, you just need to complete the required fields on your tax return, and you should receive your tax credit in 1-3 weeks.
If you are still unsure about when your money will arrive, you can track your payment status using the IRS website.
Need help filing your taxes in Texas or New Mexico?
Find a Midwest location near you and schedule an appointment with one of our tax specialists. We also accept walk-ins all day, every day.