The IRS announced that they are turning their full attention to the 2021 filing season, and that they have officially, as required by law, stopped issuing all first and second rounds of Economic Impact Payments.
The IRS and Treasury Department began delivering the first round of Economic Impact Payments in April 2020, within two weeks of the approved legislation. A second legislation was then approved at the end of the year 2020, and it required that the second round of payments be issued by January 15, 2021. It is for this reason that although it is possible that some second round Economic Impact Payments may still be in the mail, the IRS stated that it has issued all first and second Economic Impact Payments that is legally permitted to issue, based on the information they have on file for eligible taxpayers.
Most people who are eligible for these payments have already received it in these two rounds of Economic Impact Payments. But situations happen and especially this year with the tax filling processes being delayed, it is possible that you were eligible to receive these payments but have not received any of them - or part of them - yet.
If you didn't receive a payment – or if you didn't receive the full amounts – you may be eligible to claim the Recovery Rebate Credit, and in order to do this, you MUST file a 2020 tax return this year.
In case you're uncertain about the status of your payments, you can access the Get My Payment IRS tool to verify. The Get My Payment tool was last updated on January 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments. Thus, if it is reflected there that your payment, or payments, have not been remitted, then your main option to claim these payments, if you're eligible, is to file a 2020 tax return and claim the Recovery Rebate Credit.
If you want to know whether you're eligible, check out this post on the Second Stimulus Payment.
So that you have guidance on what income to look at when checking your eligibility, you should know that the first Economic Impact Payment was based on the 2019 tax year information, and a 2018 return may have been used if the 2019 was not filed or processed. Now, the eligibility for the Recovery Rebate Credit and the amount you're eligible to receive will both based on the 2020 tax year information.
In order to claim the Recovery Rebate Credit, you will need to know the amounts of the Economic Impact Payments you have received, if any. You can easily find this on your Economic Impact Payment notice 144.
If you don't have your Economic Impact Payment notice, you can view the amounts of your first and second Economic Impact Payments through your individual online account on the IRS website. For married filing joint individuals, each spouse will need to log into their own account to view their payments amounts.
To avoid recovery rebate credit delays, it is urgent that you file a complete and accurate 2020 tax return as soon as possible.
Whether you need help with just your current tax year 2020 return, need help with a tax problem, want to create an international tax strategy that will save you money and give you peace of mind while living abroad, or you need to get caught up with late tax filings, you can get started by booking an initial consultation with me. I’m here to help you!
If you would like to schedule a time of your convenience to discuss your situation further and your tax questions, contact me.