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Individual Stimulus Payments Recap; 2020 Required Reporting

There are now 3 separate legislations providing a Stimulus payment to individuals. See below recap.

In addition, individual taxpayers must report on their 2020 tax return the amount of stimulus they received in the First and Second rounds of Stimulus, even though the funds received are not taxable.

This will be helpful for taxpayers who did not receive all that they were due because they did not file a tax return, or taxpayers who had less income in 2020 than the year their stimulus payments were based on (2019 or 2018). This is referred to as the Recovery Rebate Credit on your tax return.

But did you get all the Stimulus you should have received according to federal legislation?

To check that, here’s a recap of the 3 rounds of Stimulus:

First Stimulus (Spring/Summer 2020):

$1200 per person and $500 per dependent under 16 as of the end of the year

Eligibility:

Single and married filing separately taxpayers phase out between $75,000 - $99,000

Heads of household phase out between $112,500 and $148,500

Married filing joint taxpayers phase out between $150,000 and $198,000

Second Stimulus (December 2020/January 2021):

$600 per person and $600 per dependent under 16 as of the end of the year

Eligibility:

Single and married filing separately taxpayers phase out between $75,000 - $87,000

Heads of household phase out between $112,500 and $130,500

Married filing joint taxpayers phase out between $150,000 and $174,000

Third Stimulus (March/April 2021):

$1400 per person and $1,400 per dependent of any age

Eligibility:

Single and married filing separately taxpayers phase out between $75,000 - $80,000

Heads of household phase out between $112,500 and $120,000

Married filing joint taxpayers phase out between $150,000 and $160,000

(Note: that each eligible person must have an SSN)

Plus-Up Payments: [After your 2020 individual tax return is filed, if the IRS based any payment on a higher income 2019 tax return, then the IRS is supposed to automatically send you cash based on the new calculation from your 2020 tax filing]

The below website may be helpful if your situation requires deeper digging due to your specific circumstances:

If you think you’re missing a payment or payments, you’re not going to get any help by calling the IRS, but click here for suggestions:

Notes:

  • Non-filers may be required to file a 2020 tax return in order to get the Third Round of stimulus payment.

  • Children born, adopted or placed into foster care in 2020 or 2021 will qualify for the credit. For 2021 events, the taxpayer will claim the $1,400 credit on their 2021 tax return.

  • Also, note the newly Expanded Child Tax Credit: Under the same income limitations as the Third Stimulus, for the 2021 year, families with children under 6 will receive an extra $3,600 per child, and for children over 6 and under 18 an extra $3,000 per child.

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