Stimulus Payment: What That Means For Your 2020 Tax Return

The Care Act of 2020 provided many Americans and government agencies with funding in order to combat the declining economy due to the ever lingering Coronavirus Pandemic. This Pandemic left many people unemployed. As of April 2020 the unemployment rate grew above 14%.

One response from to government to combat the rising unemployment rates was to create a tax bill issuing Americans an advance on a 2020 Tax Credit known as the Recovery Rebate. This advanced tax credit was paid out to many American in the form of a stimulus payment in which most families received an payment of $1,200 and up to $2,700 for a family with three or more children under 17 years old; based off 2018 or 2019 tax return.

The government later fumbled! It rushed the Internal Revenue Service department to stop processing tax returns in order to process stimulus payments which lead to a number overpayments, payments sent to the wrong banks in error, payments were also sent to deceased individuals, and among other things many more taxpayer never received a payment.

According to the IRS, the Recovery Rebate Credit (Stimulus) will be reported when taxpayers file their 2020 tax returns. Taxpayers will need to provide a copy of the the form 1444 which was mailed to each recipient. The tax credit will be verified for correct allocation, overpayments, and most importantly allowing those who never received payment to claim the credit. There is a catch! For those taxpayer who never received the stimulus payment in 2020, maybe out of luck. Those who did not received payment will have the credit calculated when the 2020 tax return is filed; thus creating an increased refund or lowering the taxes owed. That's right million more still will not received their stimulus payment.

What can you do? Use the IRS portal to verify your stimulus payment amount using the "Get Payment Portal" Make sure you are have paid the correct amount of taxes. Make sure you review your tax return before submission as the burden of proof in on you as the taxpayer.

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