The IRS relies heavily on tax return information to determineand . That makes it tricky if you’re one of the millions of nonfilers in the US; people who aren’t required to file an annual income tax return. In fact, the White House estimates that at least 8 million people didn’t get a .
To drive home the point, President Joe Biden on Friday signed an executive order asking the Treasury to consider making it easier for this group of “ ” to receive their second payments of . It is not clear what the Treasury will do, For now, the easiest way for nonfilers to claim their money is to actually this year, using the IRS’ .
We’ll walk you through everything you need to know, including(a mistake, , not counted, ?) and which steps you need to take. (In some cases, .) As a general rule, many nonfilers received a automatically and will likely get the , too. In addition, here’s why you want to . This story recently updated.
What is nonfiler status? What usually happens at tax time?
When it comes to stimulus checks, the IRS refers to people who didn’t have to file taxes in 2018 or 2019 as nonfilers. This group includes:
- People who are part of the
- Single people under age 65 with an income of less than $12,200
- Married people under age 65 with an income of less than $24,400
- Single people age 65 or older with an income of less than $13,850
- Married people age 65 or older with an income of less than $27,000
- Veterans and Railroad Retirement beneficiaries
While young adults age 17-24 who areon someone else’s taxes don’t have to file taxes, they aren’t eligible for a first or second stimulus check due to the rules set out in the and the . Find out more about .
Typically, during tax season, if you’re included in any of the above groups, you don’t have to file a federal tax return. However, if you received any health care tax credits or subsidies, you’ll need to file to keep receiving them. You can also still file to get back any taxes withheld from your pay, or to claim certain refundable tax credits. That’s what you’re going to have to do this year to claim your missing stimulus money.
Do nonfilers qualify for the stimulus checks?
In most cases, yes. Most nonfilers fall below the income limits stipulated by each stimulus package and would be eligible for the full amount in each round —under the 2020 CARES Act, and under the December stimulus bill. Find the .
If you receive Urban-Brookings Tax Policy Center., you should have received at least a portion of both of your stimulus checks automatically — the IRS obtained the names of Social Security recipients and SSI beneficiaries from the Social Security Administration in the spring and made the payments to them automatically for both rounds, according to Janet Holtzblatt, a senior fellow at the
However, if either of your checks (or a portion of either) are missing, you’ll have to complete the extra steps below.
How can nonfilers claim a missing payment? Is it free?
In the first round of stimulus checks, the IRS sent letters to 9 million nonfilers with information on how to file a claim to get their missing stimulus money. The agency instructed nonfilers to use the nonfilers tool to enter their information by Nov. 21. However, if you missed that deadline, you can claim your money as a by filing a 2020 federal income tax return — even if you usually don’t have to:
When you file a 2020 Form 1040 or 1040SR you may be eligible for the Recovery Rebate Credit. Save your IRS letter – Notice 1444 Your Economic Impact Payment – with your 2020 tax records. You’ll need the amount of the payment in the letter when you file in 2021.
If you did use the IRS nonfilers tool, you should have automatically received a second payment. If you didn’t, you can still file for that money as a Recovery Rebate Credit as well.
You can file for your Recovery Rebate Credit as part of a Feb. 12, and federal tax returns are due April 15. (In 2020, the IRS as a result of the ).this year, even if you don’t normally do so. The IRS said it will start processing 2020 tax returns on
To get started, most nonfilers are eligible to use the IRS’ Free File tool (if you make less than $72,000 a year, you can use it). As the name suggests, this tool lets you obtain a free federal tax return and in some cases a free state return as well. It’s available to use now.
Go to the Free File site and select Choose an IRS Free File Offer to see all of the options available, which include companies like . These programs should walk you through how to file your return and the Recovery Rebate Credit Form 1040 or Form 1040-SR, all with no costs or fees.
What’s the Recovery Rebate Credit? How much money am I supposed to get?
A Recovery Rebate Credit is a tax credit that will either increase the amount of your tax refund or decrease the amount of tax you owe, based on how much of your stimulus funds the IRS still owes you.
You’ll file for your missing money from the first and/or second stimulus on the 2020 Form 1040 or Form 1040-SR on your 2020 federal tax return. The tax return instructions include a worksheet you can use to figure the amount of any Recovery Rebate Credit for which you are eligible, according to the IRS. However, this worksheet requires you to know the amounts of your stimulus payments. CNET’s and can provide an estimate.
Find out the IRS’ official total for you in two ways:
- IRS letters: You should have received IRS Notice 1444 for the first stimulus payment, and you should receive Notice 1444-B for the second. Hold onto those letters, because you’ll need the information for the Recovery Rebate Credit worksheet or any you use. If you .
- Your online tax account: In the coming weeks, if you have an account on IRS.gov/account, you’ll be able to log in and see the amounts of the stimulus payments you were allotted.
How soon will your stimulus payment arrive after you file for a Recovery Rebate Credit?
Since the IRS said it will start processing 2020 tax returns on Feb. 12, it’s likely it would begin sending out Recovery Rebate Credit payments shortly after that,. The IRS recommends filing electronically and as soon as possible to speed up your payment.
If you file for a Recovery Rebate Credit with the IRS Free File tool, but don’t give the IRS your banking information, your money will arrive on a paper check in the mail. Just know that this option will take longer. Giving the IRS your.
After you file, you can use the.
For more, here’s what we know so far about, and .