Forget about your tax refund. Stimulus money is why you want to file early this year - CNET

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The deadline for filing your taxes this year is April 15, or Oct. 15 if you file for an extension.

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Although tax season officially starts Feb. 12 for the IRS, you have two reasons other than a tax refund to get your paperwork in order as soon as possible. First, you can set up direct deposit with the IRS if you don't have it already, preparing yourself for faster delivery of a third stimulus check if it happens during tax season. And the sooner you file, the quicker you can recover any unpaid stimulus check money you're due.

Many people who were eligible for stimulus check money either didn't receive any or didn't get all they were entitled to. For example, if you weren't required to file taxes for 2019, you may not have received a second stimulus check for $600. Also, if you share custody of a child with someone who isn't your current spouse -- and you take turns claiming that child as a dependent on every other year's taxes -- both parents are entitled to stimulus checks for that child dependent, but only one may have received the money.

First we'll take a look at how filing early will help get your your tax refund (and any stimulus check money you're due) in your hands faster, then we'll show you how to find out if you're owed stimulus check money and what you need to do to get it in the form of a tax credit on your 2020 tax return. For more information about direct payments in general, here's everything to know about stimulus checks and your 2020 taxes, the top facts you should keep in mind and when it's time to contact the IRS or set up a payment trace.

How soon can I get my stimulus money and tax refund if I file early?

Although you can still technically file your taxes by post and request a paper check, the fastest way to get money you're owed is to file electronically and have funds deposited directly into your bank account. This year, the IRS won't begin accepting tax returns until Feb. 12, making that the soonest you can submit your own (April 15 is the last day to file). The IRS says 90% of filers will receive their refunds in 21 days or sooner, but it could also take even less time than that. 

The IRS says its Where's My Refund tool will reflect the status of your refund within 24 hours of filing, which could include a confirmation that your refund has been issued. From there, it could take anywhere from one to three days for the money to appear in your bank account.

Assuming seven days is the soonest you'd get your combined tax/stimulus refund and 21 days is the longest, we've sketched out what a difference filing sooner, rather than later, could make. (There's more directly below on how to calculate how much money you might get in addition to your tax refund.)

When to expect your tax refund

If you file on this date	This is the soonest	This is the latest
Feb. 12	Feb. 19	March 5
March 1	March 8	March 22
April 1	April 8	April 22
April 15 (last day to file)	April 22	May 6
Oct. 15 (last day with extension)	Oct. 22	Nov. 5

Does the IRS owe me stimulus check money? How to find out

To figure out whether and how much money you're owed from a previous round of stimulus checks, if any, first you have to determine how much you were owed for each previous payment, then subtract from that the amount you actually received (if any). 

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Here's how to calculate the payments you were owed:

Next, you'll want to check your bank account where your payments were deposited to determine the amount. (If you received an EIP card, you can check the balance and transaction history here.) The IRS should've sent you a letter within 15 days of issuing your stimulus check, however it was issued, and that letter should indicate how much money you received. If you no longer have that letter, you can use the IRS's Get My Payment tool to help you figure out when you received the payment. It'll also show you the last four digits of the bank account it was deposited into if it was deposited directly.

There's also a form to help you figure out the amount you're owed on page 59 of this PDF detailing instructions for 1040 and 1040-SR tax forms, but it's a doozy to follow.

If one of your previous stimulus checks was mistakenly cut, you can claim the difference as a tax credit when you file this year.

Angela Lang/CNET

Why would the IRS owe me money from my first or second stimulus checks?

There are all kinds of reasons why the IRS might still owe you stimulus check money, including:

How to claim a Recovery Rebate Credit

The IRS requires you fill out either form 1040 or 1040-SR if you're going to claim a Recovery Rebate Credit on your 2020 taxes. Once you have the amount you're owed worked out, you'll enter it on line 30 of either of those forms (see screenshot). Yes, it's that simple.

The fastest way to get your money is to file electronically and have funds deposited into a bank account.

Sarah Tew/CNET

How you'll get the stimulus check money you're owed

If you're due a refund from the IRS, it'll include both your full refund amount plus whatever you're owed from the Recovery Rebate Credit. In other words, it'll be bigger. If, however, you owe the IRS money, your Recovery Rebate Credit will be applied to the debt. If the tax credit is more than you owe, you'll receive the difference as a refund.

Here's what to do if you're a nonfiler, i.e. you won't be filing taxes for 2020, and you're still owed a stimulus check. If you have child dependents, this information about the child tax credit could help put more money in your pocket. And here's how to calculate your Adjusted Gross Income, aka "AGI."

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January 21, 2021 at 01:07AM
https://www.cnet.com/personal-finance/forget-about-your-tax-refund-stimulus-money-is-why-you-want-to-file-early-this-year/

Forget about your tax refund. Stimulus money is why you want to file early this year - CNET

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