The IRS has now sent out the second round of stimulus checks for up to $600 per person. Though the agency’s stimulus check formula is largely based on certain elements of your taxes (you can use our calculator to estimate how much money you were owed in a second payment), many people who don’t usually file taxes were still eligible for a check. Though most of these nonfilers should have gotten a second stimulus check automatically, many are reporting that those checks (and even the first payments) never arrived.
There are several reasons why your second stimulus check may be missing: An IRS direct deposit mistake, a change of bank account or address, a child dependent not counted, an accidental garnishment. For nonfilers, in most of these cases, you’ll need to claim your money as a Recovery Rebate Credit on a tax return this year — even if you don’t usually file taxes. (In some cases, like if you got a letter from the IRS confirming that it sent your payment, but you never received the payment — you’ll have to request an IRS Payment Trace.)
So how do you claim a Recovery Rebate Credit if you don’t typically have to file taxes? Luckily, the IRS has a Free File program that can help you get started. Here’s what we know right now.
Who counts as a nonfiler? 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 SSI or SSDI programs
- 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 are claimed as dependents on 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 CARES Act and the December stimulus bill.
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.
Are nonfilers eligible for 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 — $1,200 per person under the 2020 CARES Act, and $600 per person under the December stimulus bill.
If you receive SSI or SSDI, 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 Urban-Brookings Tax Policy Center.
However, if either of your checks (or a portion of either) are missing, you’ll have to complete the extra steps below.
What do nonfilers have to do to claim missing stimulus money? And does it cost anything?
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 Recovery Rebate Credit 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 when you file for a federal tax return this year, even if you don’t normally do so. The IRS said it will start processing 2020 tax returns on Feb. 12, and federal tax returns are due April 15. (In 2020, the IRS extended the deadline to July 15 as a result of the COVID-19 pandemic).
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 TaxSlayer and TurboTax. 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 exactly is a Recovery Rebate Credit? How do I find out how much money I’m owed?
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.
Find out how much you are owed 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 tax preparation software you use.
- 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 received.
When and how will your stimulus money 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, depending on how early you file. The IRS recommends filing electronically and entering your direct deposit information 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.
After you file, you can use the IRS Where’s My Refund? tool to track your payment.
