You may have already received your first and second stimulus payments, but did you know there’s a chance you could qualify for even more? That’s right – depending on the life changes you experienced in 2020, you may be owed additional stimulus money. In fact, the life changes that occurred for you in 2020 could increase your entire tax refund.
The quickest way to understand what is owed to you and receive your cash is to file your 2020 tax return. Here is a quick breakdown of why you should consider getting a jump start on filing your 2020 taxes:
1. Get your tax refund as soon as possible.
Do you anticipate getting an IRS refund this year? If so, filing early is the right move. The sooner you file your taxes, the sooner you can get that refund money in your hands. Typically, the IRS issues nine out of 10 tax refunds within 21 days of acceptance when a filer chooses to e-file their tax return and opt for direct deposit. Waiting to file only prolongs you from receiving the refund dollars you deserve.
2. Your tax refund may be bigger than you thought.
Most years include at least one life change for many filers. And those life changes often lead to tax deductions and credits that can give your tax refund a boost. For example, having a baby, tying the knot (or untying the knot), buying a home, and simply sending your child off to daycare all come with big tax benefits. Before you know it, you’re e-filing your return and getting a larger refund than you expected. That’s a welcome surprise.
For many filers this season, an unexpectedly larger refund brings even more relief than normal. To say that 2020 had its fair share of life changes would be the understatement of the century. So much happened last year. From COVID-19 tax implications to job loss and unemployment to student loan forbearance and stimulus payments, most filers’ tax returns will look a bit different this year. And that means your tax refund may also look a bit different. Filing early helps ensure you can quickly get your cash back in hand to help offset some of those challenges that 2020 brought.
3. Check to see if you qualify for additional stimulus dollars.
Over 100 million Americans have received a second stimulus payment to date with even more set to get theirs in the coming weeks. If you’re someone who already has your payment in hand, we’re happy to hear you’ve received that well-deserved relief. But, did you know you may possibly qualify for even more?
That’s right – some Americans may qualify to receive more stimulus money than what they received in their first and second payments. Because your payments were originally based on your 2019 tax data but are intended to be reflective of your 2020 tax data, you could qualify for more if you experience certain life changes in 2020.
For example, if you had a baby in 2020, you likely qualify for more stimulus funds because your adorable new dependent wasn’t included on your 2019 tax return. Because of that, you didn’t receive the stimulus money you’re owed for having a qualifying child. For every qualifying child, an extra $500 was given to recipients of the first stimulus payout, and an extra $600 was given with the second stimulus payout. Therefore, while you may have received $1,200 and $600 respectively as stimulus payments, you actually qualify to receive an additional $500 on your first stimulus payment and an extra $600 on your second stimulus payment for your new bundle of joy.
If you think you may qualify for more stimulus money, the quickest way to find out (and get your money) is to file your 2020 tax return. A quick calculation on your return will determine how much additional stimulus money you may be owed.
To make it easy to find out if you are due extra stimulus money, TaxAct can do the calculations for you. All TaxAct’s products are up to date with the latest tax law changes and can make figuring out if you’re owed additional money a quick process.
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