A year after the pandemic, some Americans still don’t know why they received less stimulus money than they expected and in some cases no money at all.
If you are, there’s good news: With a chargeback discount on this year’s tax return, you can file your claim for those funds.
Remember, this does not necessarily mean that you will be getting the exact amount you think you owe.
Here’s how it works: The incentive checks issued in the last year for up to $ 1,200 and $ 600 per person were essentially prepayments of the chargeback discount credit.
More from Personal Finance:
Social Security beneficiaries get the bulk of new $ 1,400 incentive vouchers
Fourth stimulus checks are unlikely. What help could be next
How to make sure you don’t miss out on $ 1,400 stimulus checks in the mail
A section for claiming that credit has been added to this year’s tax return forms – line 30 of Form 1040 or 1040-SR.
On that part of the tax return, tax holders can start with the amount of incentive money they’ve already received and possibly calculate additional money they owe. This can be done through a worksheet that comes with the tax form or through tax filing software.
Once the IRS receives the return, the tax authorities will also keep track of your chargeback rebate credit, which means it can correct the amount you claim.
If there is a discrepancy, it can lead to a “slight delay” in the processing of the tax return, according to the tax authorities.
However, for people who still don’t understand why they received less money than they thought they owed, or no money at all, the process could help clear the confusion.
The IRS will send letters to the submitters in this situation explaining what prompted the correction.
Some reasons the IRS might correct the amount of credit include not providing a valid Social Security number or if you were claimed to be dependent on a 2020 tax return. If a dependent was 17 or older as of January 1, 2020, He does not qualify for a benefit under the terms of the first two checks.
Mathematical errors in the discount calculations can also lead to a correction.
The chargeback discount on this year’s tax return typically applies to the first two incentive checks.
However, the IRS may top up the new $ 1,400 payments in some circumstances, such as if your 2020 returns show that your income has declined since 2019.
By filing a 2020 declaration, you can also receive an incentive check if the government has not registered your data, especially if you normally do not file a declaration.
Note that federal beneficiaries – such as those who receive Social Security, supplemental security income, or railroad retirement benefits – should get their checks automatically, even if they don’t normally file returns. However, if those beneficiaries are required to file information about eligible dependents, the IRS encourages them to file a tax return.
Federal tax returns are generally due on May 17 of this year.
If your income is $ 72,000 or less, you can file your tax returns for free using the IRS Free File program.