If a US Citizen did NOT receive their COVID stimulus checks, can they still get them?

Turn your missed COVID STIMULUS checks into a positive tax credit towards taxes owed

By
Coach JP Money
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0
50

Recently a good friend let me know that they did NOT receive their COVID Stimulus Checks back in 2020 and 2021.

Can they still get them?  Or maybe get a credit on their future taxes?

I did the research and here’s what can be done.

The short answer is YES!  Yes, my friend may still be able to claim the stimulus payments they missed by filing for the Recovery Rebate Credit on their federal tax return.

Here’s how it works and what they can do:


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1. What is the Recovery Rebate Credit?

  • The Recovery Rebate Credit is a tax credit that allows eligible individuals who didn’t receive their full stimulus payments (Economic Impact Payments) to claim the amounts as part of their tax refund or to reduce their tax liability.

2. Who is Eligible?

  • U.S. citizens or resident aliens who were not claimed as dependents on someone else’s tax return.
  • Individuals who meet the income eligibility requirements for the stimulus payments but never received the 2nd or 3rd checks.

3. How to Claim the Credit

  • File a 1040 or 1040-SR tax return, even if you’re not normally required to file taxes.
  • On the return, complete the Recovery Rebate Credit Worksheet to calculate the amount owed.
  • If you didn’t file taxes for the year when the stimulus payments were issued (2020 for the 2nd check, 2021 for the 3rd check), you will need to file or amend their return for those years.

4. Effect on Back Taxes

  • If you claim the credit and it results in a refund, the IRS may apply that refund to any outstanding tax debt. While it won’t eliminate the debt entirely, it could reduce what is  owed.
  • If the credit exceeds the amount, you could receive the difference as a refund.

5. Steps To Take

  • Check IRS Payment History: Use the IRS’s “Get My Payment” tool or their online account to confirm whether the IRS has a record of issuing the 2nd and 3rd checks.
  • File or Amend Past Returns: If you didn’t file a 2020 or 2021 return, or if there were errors in their original filing, you will need to file or amend these returns to claim the credit.
  • Seek a Payment Plan: If they can’t pay the full amount of tax you owe, contact the IRS to set up a payment plan, which could prevent additional penalties and interest.  (See Offer In Compromise)

6. Consult a Tax Professional

  • Given the back taxes and the missing stimulus payments, it’s wise to work with a tax professional or a free tax assistance service (like Volunteer Income Tax Assistance, or VITA) to ensure they correctly claim the Recovery Rebate Credit and resolve their tax debt.

By following these steps, you can potentially use the missed stimulus payments to offset your tax liability and ease your financial burden.


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