Filing taxes is one of the most important things that people need to do in the New Year. This time, however, it will be even more important because of the stimulus checks. Considering this, the IRS has come up with a press release to help people file their 2020 taxes, especially those who didn’t get coronavirus stimulus checks, or got less than what they expected.
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Coronavirus stimulus checks and 2020 taxes
Millions of Americans got $1,200 in stimulus checks after Congress approved the CARES Act in March. Along with the $1,200, people also got $500 for each qualifying child.
However, there were many who didn’t get the stimulus checks even though they were eligible, or got less than what they qualified for.
Many of those who didn’t get the checks were those who didn’t file a tax return in 2018 or 2019, or those who failed to send their information to the IRS before the deadline. Those who were eligible but didn’t get the checks, or got less than intended, are still eligible to get the payment as a credit when they file their 2020 tax return, in the form of a Recovery Rebate Credit.
“If a taxpayer didn’t receive the full amount of the Economic Impact Payment for which they were eligible, they may be able to claim the Recovery Rebate Credit when they file in 2021,” the IRS says.
Further, the IRS says people are not required to provide details on the Recovery Rebate Credit on tax year 2020 Form 1040 or 1040-SR at the time of filing 2020 taxes, unless they are “eligible to claim an additional credit amount.”
Interest on refund taxable
Along with the stimulus checks, the IRS also answered some of the most asked questions, such as, if the interest on their 2020 refund is taxable or not.