Fast Facts for April 5, 2021
You may have filed a recovery rebate credit on your 2020 taxes to get your missing stimulus one or two payment –but you may get a more or less back…. And that recalculation may cause a delay in your tax return processing
But why????
Well, when you file your 2020 taxes and claim the recovery rebate credit — if you’re eligible, the IRS issues you the missing money. But because some people claimed it when they weren’t actually eligible, or miscalculated the amount – the IRS corrects those issues and sends you a notice that explains the change. But guess what – that also causes a “slight” delay in your tax return processing.
The IRS says the most common recovery rebate credit mistakes they’ve had to fix include:
- The individual was claimed as a dependent on another person’s 2020 tax return.
- The individual did not provide a social security number valid for employment
- the qualifying child was age 17 or older on January 1, 2020.
- Math errors relating to calculating adjusted gross income and any EIPs already received.
As I said if the IRS changes your recovery rebate credit amount you’ll receive a notice. The IRS says you need to read that notice carefully, and then review your 2020 tax return and the EIP requirements.
For more information you can go to irs.gov/rcc and you can find a helpful f-a-q section.
More info on the Recovery Rebate Credit here.
Recovery Rebate Credit FAQ: Https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-g-correcting-issues-after-the-2020-tax-return-is-filed
PLUS
“Plus up” payments are here – and more are coming!
Are you getting a plus up payment? What is a plus up payment? What the…
If your stimulus payment is missing or if it was incorrect – you’ll probably be getting a “plus up” payment.
I actually told you about those in this video two weeks ago.
But I’ll explain it again, since so many of you are asking.
“Plus up” payments are “supplemental” EIP 3 stimulus payments given to taxpayers who were underpaid when the stimulus payments were initially distributed a few weeks ago.
Basically – it’s the stimulus balance you’re owed.
The IRS says it started issuing millions of “plus up” payments to two specific groups.
- Those who received eip3 based on their 2019 tax return, but because of a significant income change or an added qualified dependent, when their 2020 tax return was processed it was determined they were owed more stimulus
- And the other group — those who did not have their information on file with the IRS but after processing their 2020 returns, it was determined they qualified for a stimulus.
The IRS says “plus up” payments will continue to be issued weekly as more 2020 tax returns are processed by the IRS. They will continue to be distributed by direct deposit and check. And if you haven’t received a stimulus payment at all but qualify – the IRS says they will continue to roll out those payments too.
