For millions of Americans, the economic impact payments – better known as stimulus checks – provided a crucial lifeline during the unprecedented challenges of the COVID-19 pandemic. While the initial waves of direct deposits and paper checks have long since passed, a significant number of individuals and families either never received their payments, received an incorrect amount, or simply didn’t know they were eligible.
The good news is that it’s not too late to claim the first ($1,200/individual + $500/dependent) and second ($600/individual + $600/dependent) stimulus checks. However, the process has changed. You can no longer simply wait for a check in the mail or use the IRS’s "Get My Payment" tool for these specific payments. Instead, these missed funds are now claimed as a refundable tax credit on your federal income tax return. This comprehensive guide will walk you through everything you need to know to get the money you’re owed.
Understanding the Stimulus Checks: Economic Impact Payments (EIPs)
Before diving into how to claim them, let’s briefly recap what these payments were:
- First Economic Impact Payment (EIP1): Authorized by the CARES Act in March 2020, this payment provided up to $1,200 for eligible individuals, $2,400 for married couples filing jointly, plus an additional $500 for each qualifying child under age 17. The IRS generally used 2019 tax returns (or 2018 if 2019 wasn’t filed) to determine eligibility and payment amounts.
- Second Economic Impact Payment (EIP2): Authorized by the Consolidated Appropriations Act of 2021 (signed December 2020), this payment provided up to $600 for eligible individuals, $1,200 for married couples filing jointly, plus an additional $600 for each qualifying child under age 17. For this payment, the IRS generally used 2019 tax returns to determine eligibility.
Crucial Point: These payments were technically advance payments of a tax credit known as the Recovery Rebate Credit (RRC). This is the key to understanding how to claim them now.
Who Was Eligible? (And Who Still Is!)
Eligibility for both payments was largely based on Adjusted Gross Income (AGI), residency, and Social Security Number (SSN) status.
Adjusted Gross Income (AGI) Limits:
- EIP1: Payments began to phase out for individuals with an AGI over $75,000 ($150,000 for married couples filing jointly, and $112,500 for heads of household). The payment was reduced by $5 for every $100 over the limit.
- EIP2: Payments began to phase out for individuals with an AGI over $75,000 ($150,000 for married couples filing jointly, and $112,500 for heads of household). The payment was reduced by $5 for every $100 over the limit.
- No Upper Income Limit for Eligibility: While payments phased out, there wasn’t an absolute upper income limit to be eligible for some payment. For example, a single filer with an AGI of $99,000 would receive no EIP1, but they were still technically "eligible" for the credit.
Other Key Eligibility Factors:
- Valid Social Security Number (SSN): Generally, you needed a valid SSN for yourself, your spouse (if filing jointly), and any qualifying children.
- Not a Dependent: You could not be claimed as a dependent on someone else’s tax return.
- U.S. Resident: You had to be a U.S. citizen or U.S. resident alien.
- Deceased Individuals: Generally, if a person died before receiving a payment, their estate should not have received it. If a payment was sent, it generally needs to be returned. (More on this below).
The Good News for Non-Filers: If you weren’t required to file a tax return because your income was below the filing threshold, you were (and still are) eligible for these payments, provided you met the other criteria.
The Key: The Recovery Rebate Credit (RRC)
This is the most critical piece of information for anyone seeking their first or second stimulus check. The IRS no longer issues these payments directly. Instead, you must claim them as the Recovery Rebate Credit (RRC) on your 2020 federal income tax return.
- Why the 2020 Tax Return? The first two stimulus checks were advances on the Recovery Rebate Credit for tax year 2020. This means that when you file your 2020 tax return, the IRS calculates the full amount of the RRC you were entitled to based on your 2020 income and family situation.
- If you received less than you were entitled to (or nothing at all), the difference will be added to your tax refund or reduce the amount of tax you owe.
- If you received more than you were entitled to (based on your 2020 income being higher than the income used for the advance payment), you generally do not have to pay back the excess.
Important Distinction: The third stimulus check (EIP3, authorized March 2021) is claimed on your 2021 federal income tax return if you missed it. This article focuses on EIP1 and EIP2, which are tied to the 2020 tax year.
Step-by-Step: Claiming Your Recovery Rebate Credit
Follow these steps to claim your missing first and second stimulus checks:
Determine Your Eligibility (Again, Based on 2020):
- Even if you weren’t eligible based on your 2019 income, you might be based on your 2020 income. For example, if your income dropped significantly in 2020, or you had a new baby.
- Use your actual 2020 AGI and qualifying children count to calculate what you should have received for EIP1 and EIP2.
Gather Necessary Information:
- Your 2020 Income Information: W-2s, 1099s, etc.
- Your Social Security Number (SSN) and Your Spouse’s (if applicable): And SSNs for any qualifying children.
- IRS Notice 1444 and Notice 1444-B (if you received them): These notices from the IRS confirmed the amount of EIP1 and EIP2 you received. Even if you only received one, these are helpful records. If you don’t have them, don’t worry; you can still proceed.
- Bank Account Information: For direct deposit of your refund.
Choose Your Filing Method for Your 2020 Tax Return:
- IRS Free File Program: If your AGI was below a certain threshold (usually around $73,000 for tax year 2020), you can use guided tax software provided by IRS partners for free. This is often the easiest method for most people.
- Commercial Tax Software: TurboTax, H&R Block, TaxAct, etc. Many offer free versions for simple returns or charge a fee for more complex ones.
- Tax Professional: A certified public accountant (CPA) or enrolled agent (EA) can prepare and file your return for you. This is a good option if your situation is complex.
- Paper Forms: You can download Form 1040 (or 1040-SR for seniors) and the associated schedules from the IRS website and fill them out manually. This is the slowest method and more prone to errors.
Complete Your 2020 Federal Income Tax Return (Form 1040 or 1040-SR):
- Line 30: This is the key line for the Recovery Rebate Credit on the 2020 Form 1040.
- Tax Software Guidance: If you use tax software, it will typically guide you through a series of questions about whether you received the first and second stimulus checks and how much you received. Based on your answers and your 2020 income/dependents, the software will automatically calculate the RRC you’re owed and enter it on Line 30.
- Manual Calculation: If you’re filing on paper, you’ll need to use the Recovery Rebate Credit Worksheet found in the Form 1040 instructions for 2020. You’ll subtract any amounts you did receive from the amounts you should have received based on your 2020 information. The difference goes on Line 30.
File Your 2020 Tax Return:
- E-File (Recommended): Electronically filing your return is the fastest, most accurate, and most secure method. Refunds are typically issued much quicker with e-filing.
- Mail: If you file a paper return, make sure to mail it to the correct IRS address.
Monitor Your Refund Status:
- Once you’ve filed, you can check the status of your refund using the IRS’s "Where’s My Refund?" tool. It’s updated once every 24 hours, usually overnight. You’ll need your SSN, filing status, and the exact refund amount.
Specific Scenarios and Common Questions
"I didn’t file a 2018 or 2019 tax return."
- That’s okay! You can still claim the RRC by filing a 2020 federal income tax return. The IRS will use your 2020 information to determine your eligibility and the amount of the credit.
"I received some, but not all, of the payment I was entitled to."
- This is a common scenario, especially if your income dropped in 2020, or you had a new baby. When you file your 2020 tax return and fill out the RRC section, you’ll enter the amount you did receive. The IRS will then calculate the difference you’re owed and add it to your refund.
"My check was lost, stolen, or never arrived."
- First, try to claim the RRC on your 2020 tax return. If the IRS records show a payment was issued, and your refund doesn’t reflect the RRC, you may need to initiate a payment trace.
- To do this, call the IRS at 800-919-9835 or mail/fax Form 3911, Taxpayer Statement Regarding Refund. You can only request a trace after a certain period has passed since the payment date (e.g., 5 days after direct deposit, 4 weeks after check mailing).
"I received a check for a deceased person."
- If a payment was sent to someone who died before the payment was issued (for EIP1, before receipt; for EIP2, before Dec 31, 2020), it generally needs to be returned to the IRS. There are specific instructions on the IRS website for returning erroneous payments. If the person died after receiving the payment, it’s generally considered part of their estate.
"My AGI in 2020 was higher than 2019, making me ineligible based on 2020 income."
- The good news is that if you received an advance payment (EIP1 or EIP2) based on your lower 2019 income, you do not have to pay it back, even if your 2020 income would have made you ineligible or reduced the amount. The RRC only allows you to claim more if you’re entitled to it, not to pay back an overpayment.
"I had a new baby or adopted a child in 2020."
- Congratulations! If you added a qualifying child to your family in 2020, and that child was not factored into your initial stimulus payments, you can claim the additional $500 (EIP1) and $600 (EIP2) per child through the RRC on your 2020 tax return.
"I’m a non-filer and have very little income."
- You still need to file a 2020 tax return to claim the RRC. You can file a very simple return, often called a "zero income" return, just to claim the credit. Many IRS Free File options cater to this situation.
Important Considerations and Deadlines
- The Clock is Ticking (but not as fast as you think): While the original distribution deadlines are long past, you generally have three years from the original tax return due date to file an amended return or claim a refund. For the 2020 tax year, the original due date was April 15, 2021. This means you typically have until April 15, 2024, to file your 2020 tax return and claim the Recovery Rebate Credit.
- File Electronically (E-file): E-filing is almost always the fastest way to get your refund. The IRS can process e-filed returns much quicker than paper returns.
- Keep Records: Always keep a copy of your filed tax return and any related IRS notices (like Notice 1444) for your records.
- Beware of Scams: The IRS will never call, text, or email you demanding immediate payment or asking for personal financial information related to stimulus checks. All legitimate communication will come via mail.
Conclusion
Don’t leave money on the table. If you believe you were entitled to the first or second stimulus checks (or a higher amount than you received) and haven’t claimed them, the Recovery Rebate Credit on your 2020 federal income tax return is your pathway to getting that money. Whether you’re a first-time filer, someone whose income changed, or simply missed the initial payments, filing your 2020 return is the essential step. Take action now to ensure you receive the financial relief you were due.