WASHINGTON—The Internal Revenue Service is basically done sending out stimulus checks, after finishing a first round in the spring and summer and a second round in December and January. But there are still billions of dollars that some households can claim—through their 2020 tax returns.
No. The first round was $1,200 per adult and $500 per child and the second was $600 per adult and $600 per child. Anyone who received all of that money doesn’t need to do anything. And the stimulus payments aren’t taxable income.
So who might get more money?
There are several categories of people who might not have received their full stimulus payments. Because the payments were based on 2018 or 2019 income and household size, some people may be eligible based on their 2020 status—even if they weren’t eligible for an upfront payment.
That can happen if income changed. The payments start phasing out when income reaches $75,000 for individuals and $150,000 for married couples. So a single person who earned $125,000 in 2018 and 2019 and $70,000 in 2020 would have received no payments but would be able to claim both stimulus payments on the 2020 tax return for a total of $1,800.
Some people in the income-phaseout range may have received partial payments and can get more if their 2020 income dropped.
What if I had a baby in 2020?
People who had babies in 2020 can also claim payments for their child on their tax return. Generally, they wouldn’t have gotten any payments during 2020 because the IRS didn’t have information about the baby from the 2019 tax return, but they can get $1,100 per child now on top of other tax benefits for parents.
How about college students who are no longer dependents?
In addition, people who were dependents on someone else’s returns but are no longer dependents may now be eligible for payments. This can happen for college students who may have been on their parents’ returns in 2019 but then started living independently in 2020.
Anyone who is still an adult dependent—including some elderly and disabled people—don’t qualify for either round of payments and can’t claim the money on tax returns.
What’s the story with mixed-status families?
So-called mixed-status families are those where some people have Social Security numbers but others don’t. The family members with Social Security numbers were ineligible for the first payment but were made eligible for both payments in the December law. They can reconcile all of that on their 2020 tax return to claim whatever they haven’t received already.
What about anyone else who didn’t get money?
Other eligible people may just have slipped through the cracks and not received a payment at all. They can file a tax return to claim the full amount, and the Biden administration is urging the Treasury Department to offer more ways for this group to access the money.
“Can we do better? Sure. Each one of these has some lessons learned inside of it,” IRS Commissioner Charles Rettig said this month.
How do I get my money?
You generally have to file a 2020 tax return—even if you normally don’t earn enough income to file one. You won’t see a line for stimulus checks on the return. Instead, look for an item called the Recovery Rebate Credit, on Line 30 of the Form 1040 and Form 1040-SR. That credit is the difference between the stimulus payments you were owed and the stimulus payments you received.
The credit will then increase any refund you would have otherwise received or lower the amount of income tax you owe.
When will I get this money?
Tax-preparation firms are working on returns right now, and so are companies working with IRS Free File, a program that allows free filing of federal tax returns for low-income and middle-income households.
However, in part because of the computer programming needed to deal with the stimulus payments and other late tax-law changes, the IRS won’t start accepting tax returns until Feb. 12. Refunds typically take up to 21 days, and the IRS expects to make a large chunk of refund payments at the beginning of March.
The IRS will move a lot faster for taxpayers who file electronically and provide direct-deposit information.
What if I got too much money?
This can happen if your income in 2018 or 2019 qualified you for a payment but was too high in 2020 to qualify. In almost all cases, you don’t have to do anything. You can keep the money, and it isn’t taxable.
What if my check was lost or stolen? Or if I got a letter informing me of a payment but I didn’t get the money?
See the IRS website for more information.
What about the additional payments President Biden is talking about?
President Biden called for $1,400 per-person payments that would increase the $600 payments approved in December to $2,000. It is up to Congress to approve Mr. Biden’s plan and lawmakers haven’t done so.
If Congress does approve additional payments, the eligibility, income limits and phaseouts may differ from the first two rounds.
Write to Richard Rubin at [email protected]
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