If all things go as per President Joe Biden’s plan, then you will likely get a third stimulus check soon. However, there are many who are still waiting for their second stimulus checks. If you are one of those and do not normally file taxes, then you may have to file one this year to claim your missing coronavirus stimulus check.
Biden, recently, signed an executive order asking the Treasury Department to speed up sending out stimulus checks to non-filers who haven’t received theirs yet. However, it isn’t known how the Treasury plans to execute Biden’s request with tax season about to start.
Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More
Though non-filers can file a complaint with the IRS for the missing checks, the easiest way to get the payment is to actually file 2020 taxes. This way, they would be able to claim the stimulus payment as a Recovery Rebate Credit.
At the time of the first coronavirus stimulus check, the IRS sent letters to about 9 million non-filers on how to claim their stimulus checks. The non-filers were asked to use the IRS tool (by Nov. 21, 2020) to provide their information to the agency. Those who missed the deadline were asked to claim the payment as a Recovery Rebate Credit by filing their 2020 taxes.
Those who used the non-filer tool before the due date would have automatically gotten the second stimulus checks. Those who didn’t, will now need to claim that money as a Recovery Rebate Credit.
So, to claim the stimulus check, you will have to file for the Recovery Rebate Credit as part of the federal tax return this year, even if you don’t usually file tax returns.
You have a lot of time to file your tax return. As per the IRS, they will start processing the 2020 tax returns from February 12, while tax returns are due by April 15.
Best way to file return?
One way non-filers can file the return is through the IRS' Free File tool. This tool, however, is eligible for those making less than $72,000 annually. Using the tool would allow you to get a free federal tax return, and possibly a free state return as well.
To use this tool, all you have to do is visit the Free File site, and click Choose an IRS Free File Offer. This will open all the available options, including using the services of TaxSlayer and TurboTax. Further, you will also get the information you need to file your return, as well as the Recovery Rebate Credit Form 1040 or Form 1040-SR, and all this at no cost.
A Recovery Rebate Credit is a tax credit that could either raise the amount of your tax return, or reduce your tax amount.