It’s not too late to claim your Initial Stimulus Package!
You heard it right! News has been buzzing that our third stimulus package is almost available, yet tons of people, most especially college students like us, weren’t able to receive the two previous stimulus packages when the pandemic hit.
Most people received $1,200 in April 2020, another round was released in January 2021 that amounted to $600, with another $1,400 on the way. And luckily for us, it isn’t late to claim the money!
But the elephant in the room still needs to be addressed. Why didn’t we receive it in the first place? Why haven’t we received anything for that matter? Well, some of us have already known that apparently, a huge factor is because of our filing status for our 2019 taxes.
A little backstory
Last year, in light of the pandemic, the Senate negotiated the Stimulus Package in the hopes of extending unemployment benefits, sending out another stimulus check, and refunding the payroll protection program. Unfortunately, nothing much was accomplished that it extended throughout months without people receiving anything. The case is that although President Trump has previously passed an order for these checks to be released, only Congress can approve appropriate funds.
In December 2020, another stimulus package was passed, amounting to $900 Billion signed by Former President Trump. Newly-elected President Biden, on the other hand, proposed checks of $1,400 per person as part of his $1.9 trillion aid plan.
Just when you think all hope is lost, hopefully, we will be able to get the stimulus packages eventually. And it’s just a matter of “when”. Now, let’s get into further details.
If you didn’t receive your stimulus package in 2020, you can claim it on your tax return this year. As for the two 2021 stimulus packages with the currently-processing 1400 on the way, although there’s no news as to when — not if — we will be able to receive them, there’s a chance that it’s going to be a tax credit for 2021.
Now, that’s out of the box, let’s talk about the vast majority of college students who are eligible to receive a stimulus check from the government this year. Regardless if you don’t have to pay for taxes since you have low earnings or no income at all, you are still eligible to receive your stimulus payment. But that’s the thing, how come that so many of us weren’t able to receive the checks?
Since the stimulus package is an advance on one’s 2020 tax credit that is in line with our personal recovery rebate credit, there are multiple reasons why a lot of us weren’t able to receive it, and this is all due to their 2018/2019 filing status that might consist of the following:
They have wrong banking information on file (e.g. old addresses; got married, changed name; etc.)
If they were dependents or can be claimed as dependents for their 2018/2019 taxes
Qualifying Child (includes college students 24 years old and below)
Adult Dependents (includes elderly parents)
Whatever the reason, it’s not too late to get that money that you are entitled to. You will be able to claim it on your 2020 tax return. When you file your tax return, you will eventually get your stimulus in a form of a recovery rebate credit.
To qualify for the recovery rebate:
Working during 2020
Is not a full-time student
Making less than $75,000 a year
If you qualify for the first stimulus but never received a deposit or a check, note that you can get up until 1200 USD individual, 2400 USD married, 500 USD per dependent child.
The tax credit would either lower the amount of taxes you need to pay or increase your tax refund. But if you got paid more than you were supposed to, you’ll need guidance from an expert.
We can help!
In light of this, JFL Bookkeeping Remedies & Consultation is offering free consultations to anyone who is in need! So get your documents together and file them early!
Click here to get started!