AMERICANS who didn’t receive their $1,200 and $600 stimulus payments can still get the money in the form of a tax rebate.
The “recovery rebate” tax credit allows those who didn’t receive their stimulus checks to claim either (or both) amount on their 2020 tax return, ensuring all eligible Americans receive their payments.
Technically, both the $1,200 and $600 stimulus checks are advance payments of the “recovery rebate” tax credit, meaning those stimulus checks you’ve received were just early tax returns.
The good news is if you have yet to receive either or both payments when filing your 2020 taxes.
If the combined total of the advanced payments you didn’t receive (either or both checks) is lesser than the recovery rebate credit amount, you would be able to get the difference returned on your 2020 tax return in the form of a larger tax refund or lower tax bill.
If the checks exceeded the amount of the credit received, you won’t have to pay the difference.
Even if Americans did receive both payments, they should check if they qualify to file for a recovery rebate tax
The eligibility rules for the recovery rebate credit are the same for the first and second stimulus checks – only that the stimulus check eligibility was determined on your 2019 tax return while the recovery rebate credit will be based on your 2020 tax return.
In general, one is eligible for the recovery rebate credit if in 2020, they were a US citizen or resident, were not claimed as a dependent on someone else’s tax returns, and have a Social Security number valid for employment.
Someone who passed away in 2020 can also claim the recovery rebate credit on their final tax return by a surviving representative. In the plan, Americans earning less than $75,000 got the payout.
As Congress still fights over $1,400 stimulus checks, this might be the easiest way to already ensure Americans get what has already been passed.
