COVID-Era Rebate: IRS Urges Swift Action
Time is running out for those who may be entitled to the COVID-era Recovery Rebate Credit in 2020. The Internal Revenue Service (IRS) is reminding eligible individuals that the deadline to file a tax return and claim their money is approaching fast.
Important Deadlines
Most taxpayers who qualify for Economic Impact Payments related to coronavirus tax relief have already received or claimed their payments through the Recovery Rebate Credit. However, for those who haven't filed a tax return for 2020, the legal deadline is May 17, 2024.
The Recovery Rebate Credit is a refundable credit designed for individuals who did not receive one or more Economic Impact Payments (stimulus payments) distributed in 2020 and 2021. Even if your income was minimal or non-existent, eligible taxpayers must file a tax return to claim the Recovery Rebate Credit.
For those looking to claim the 2021 Recovery Rebate Credit, the deadline to file the required tax return is April 15, 2025.
Taxpayers owed a refund have three years after the filing due date to claim any money entitled to them. For 2020 tax returns, this year's May 17 due date marks three years after the original May 17, 2021, tax deadline.
The IRS is also urging individuals who haven't filed a tax return for 2020 to check their records, as they may be overlooking a potential tax refund that will no longer be available after May 17. More detailed state-by-state information will be provided later this month for taxpayers who may have overlooked filing and getting a refund for 2020.
Who's Eligible?
Eligibility for the 2020 and 2021 Recovery Rebate Credit generally requires being a U.S. citizen or U.S. resident alien in the respective year, not being a dependent of another taxpayer, and having a Social Security number issued before the tax return's due date. Additionally, the 2020 Recovery Rebate Credit can be claimed for someone who passed away in 2020 or later.
More Details
Individuals with an IRS Online Account can check if they received any Economic Impact Payments, along with the total amounts. It's worth noting that any Recovery Rebate Credit received does not count as income when determining eligibility for federal benefits, and claiming the credit does not affect immigration status.
The IRS emphasizes that there is no penalty for claiming a refund on a late-filed tax return, and direct deposit is recommended for the quickest and simplest way to receive a tax refund.
Disclaimer: This article is for informational and educational purposes only and does not constitute legal tax advice. Advanced Tax Solutions is not liable or responsible for any damages resulting from or related to your use of this information. It is your responsibility to refer to official IRS documentation for information regarding any tax laws or tax information shown here.
