Dear friend,

I want to provide you with information on how to receive missed funds from the first and second stimulus checks. According to the IRS, as many as 11 million did not receive payments which they were eligible for, including many in our community. While there are many reasons why this may have happened (the Internal Revenue Service (IRS) had no income tax return information for them or had information that was outdated or incorrect), you can do something to claim this money to for which you are eligible: file your taxes!

The IRS started accepting 2020 tax returns on Feb. 12 and the deadline for filing your taxes is April 15, 2021. In these difficult economic times when every dollar is so critical, I urge you to take advantage of this opportunity to claim these critical funds. 

If you need assistance filing your tax returns, the IRS offers free local help and an online service for qualified taxpayers. Additionally, you can find tax filing assistance according to your zip code through the IRS.

The IRS and U.S. Treasury Department stopped sending out stimulus checks on January 15, 2021. But if you were eligible for but did not receive your entire stimulus check or received less than you expected, you can still recover cash when you file your 2020 tax return. When you file your  2020 tax return, you can claim the Recovery Rebate Tax Credit to receive any unclaimed stimulus funds you were eligible for but did not receive . The Recovery Rebate Credit uses the nearly the same eligibility guidelines as the stimulus checks but a crucial improvement for mixed-status families was made with the second round that applies retroactively to the first. Married taxpayers filing jointly where one spouse has a Social Security Number and one spouse does not are eligible for financial assistance under both rounds.

Since the Recovery Rebate Credit is based on your 2020 tax information, you can still be eligible if you had a change of income even if you were not eligible for previous stimulus payments. To claim the Recovery Rebate credit, you will have to file a tax return, even if you normally don’t need to file one. And for your tax return, you need to know the full amount of any stimulus funds you received.Find more information about eligibility criteria here at the IRS Recovery Rebate Credits and Economic Impact Payments page.

Tax Credits to Benefit You and Your Family

Additionally, as you file your taxes, I encourage each of you to learn more about the tax credits you may be eligible for, such as the Earned Income Tax Credit and Child Tax Credit.  Don’t miss out of on cash that could be yours! The EITC is a refundable tax credit, meaning you do not need to owe taxes to benefit. This tax credit can provide real relief to eligible individuals and working families and could decrease the amount owed or increase their refund. 

Taxpayers with a dependent under 17 years old may also be eligible for the Child Tax Credit (CTC), which helps provide support to families raising a child. For help determining if you are eligible to claim the CTC or the credit for other dependents, click here.

Also, know that a temporary rule was created to allow taxpayers to “lookback” to use earned income from 2019 for purposes of determining the EITC and the Additional Child Tax Credit (ACTC) - the refundable portion of the CTC - in tax year 2020. This will be especially helpful for many workers who have been unemployed or had lower wages in 2020.

Your friend, 
Gwen