Stimulus Check 2020 Income Tax Return

The first round of stimulus checks mandated by the coronavirus aid relief and economic security cares act was signed into law in march 2020.

Stimulus check 2020 income tax return. Some people assume that the irs will add the amount to your income generating a bigger tax bill or reduce your future tax refund when you file your tax return next year. Important stuff you need to know. The stimulus check will be paid this year based on information from your most recent tax return and will be reconciled in tax year 2020 to ensure you received the correct rebate amount.

It s line 30 and it reads recovery rebate credit. The stimulus payment or economic impact payment as the irs calls it is technically a tax credit for 2020. The irs is also using this year s tax return for taxes on your 2020 income to pay anyone who didn t get a second stimulus check before the jan.

But this isn t widely understood. Stimulus checks and your 2020 taxes. If you don t receive one but are eligible you can claim it on your 2020 taxes.

The 2020 tax return has a specific line for you to claim the stimulus money. Second round stimulus checks are being sent through mid january. You may be able to claim the recovery rebate credit.

If you re overpaid you don t have to pay it back. 15 deadline through a recovery rebate credit that. The cares act gave a maximum 1 200 per person and 500 per eligible dependent child under 17.

When you file your tax return next year there will.