Stimulus On 2020 Tax Return
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.
Stimulus on 2020 tax return. It s line 30 and it reads recovery rebate credit. The 2020 tax return has a specific line for you to claim the stimulus money. Unlike a tax deduction which reduces your taxable income and therefore your tax payment a tax credit reduces the amount of tax you owe dollar for dollar.
When you file your tax return next year there will. Technically stimulus payments are an advance on a tax credit for the 2020 tax year. The irs calls this credit the recovery rebate credit.
Second round stimulus checks are being sent through mid january. For instance the stimulus checks directed a combined 1 100 to each dependent child 16 and under but if you had a baby in 2020 the irs wouldn t have known that given the tax agency won t.