/Some Might be Owed More Stimulus Money this Tax Season

Some Might be Owed More Stimulus Money this Tax Season

Tax season is right around the corner and some Americans may realize while they file their tax returns that they are owed additional stimulus money. The stimulus money is based on the 2018 or 2019 tax returns, depending on which was the most recent on file at the time. According to Fox News, if you had filed your 2019 return (or it was not yet processed) and experienced a loss in income in 2020 during the pandemic, you may find yourself eligible for additional stimulus dollars.

The payments are considered an advance on a refundable tax credit for the 2020 filing year – which means the funds were distributed early based on data available to the tax agency at the time. However, if the applicable 2020 income data changes your eligibility, you can claim the credit when you file.

On the flip side, if you received money that you are no longer eligible for based on a past tax return (i.e. $500 for a dependent who is no longer a dependent on your 2020 filing) you are not required to take action to return it.

How to claim:

If you find yourself in a situation where you are owed money based on how your economic impact payment was calculated, you can claim it when you file your 2020 tax return.

Individuals must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit, even if they are do not normally file a tax return.