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Stimulus Check Update: $1,400 Payments May Affect Tax Returns, Here's Why

Stimulus Check Update: $1,400 Payments May Affect Tax Returns, Here’s Why
03/12/21 AT 9:41 AM
Many Americans are eagerly awaiting their third stimulus checks after President Biden signed his enormous $1.9 Trillion American Rescue Plan into law, but while $1,400 direct payments could arrive in many bank accounts as soon as this weekend, the relief payments could stall other money that Americans might be expecting from their federal income tax returns.
With the IRS processing not only tax returns but also the stimulus payments, the newest round could cause a further backlog when it comes to processing tax returns that have been filed, WDAF, a FOX affiliate station reports. ....

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Wheres my stimulus? How to redeem payment with IRS Recovery Rebate Tax Credit

While stimulus payments are not considered taxable income, the IRS wants to know how much you received.
For those people who did not receive the full amount for the first or second payments, the IRS said it ll give you a credit, which will be applied to your taxes.
In this tutorial video, ABC 7 Chicago s Samantha Chatman shows those who qualify how to fill out the form.
If you re eligible for the credit, and either we didn t issue you any Economic Impact Payments or we issued less than the full amounts, you must file a 2020 tax return to claim the Recovery Rebate Credit, the IRS said. ....

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No stimulus check yet? IRS says some eligible taxpayers won't get 2nd payment

Dozens are seeing their second stimulus check go into the wrong bank account. Here s why.
By law, the IRS says banks must return the payment to the IRS; they cannot hold and issue the payment to an individual when the account is no longer active.
The IRS says they also cannot change mailing information.
So what can you do if you moved or changed your banking information and don t end up getting a second payment?
The IRS says you can claim something called a
Tax expert Chad Elkins explained: Well here s what it is. On your 2020 tax return, your form 1040, there s a new box that s going to let you enter what you were paid and if it was below what you should have been paid, it s going to let you reconcile that on the 2020 return. So, rather than getting a stimulus check, you ll get a credit on your tax return which could either increase your refund amount or decrease any amounts owed. What if you didn t receive a stimulus payment at all? If you didn t receive a ....

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