Well, here we are! Another new year has started! The ‘virus’ is still running rampant! It seems like even if you want the vaccine you can’t get it! Lots of you are wondering what happened to your stimulus payment. Hopefully we can help a little, at least with the stimulus payment question.
What is the timing?
IRS is going to start accepting personal returns on Feb 12 this year. That is later than most years. The returns that include the big credits, mainly the EITC credit, won’t be processed until the end of Feb. With IRS’s usual timing of 21 days, that means non EITC refunds should be available starting about the first week in March. The EITC refunds should be available about the middle of March. Feb 12 is definite! Everything else is subject to change due to IRS work load, questionable claims, conflicting returns.. in other words, these are guidelines, hopefully that is what will happen.
What has happened?
Many folks are wondering what happened to their stimulus payment. Maybe you didn’t get anything, maybe you didn’t get as much as you should have. The first stimulus payment back in Mar/Apr of 2020 was to be $1200/adult and $500/dependent. The second payment, around the first of this year, was to be $600/person (adult or dependent). That means a family of 4 would have received $3400 last spring and $2400 just now. Payments for dependents are for dependents age 17 or younger. If you did not get the correct amount, you can claim it as a ‘recovery rebate credit’ on your 2020 tax return. The stimulus itself is not taxable! However, if you owe back child support, your refund will get hit for that.
What can be done?
This is not rocket science, we can help you figure all this out. You will find that we are less expensive than the national tax prep companies. In addition, we have all the benefits of the large tax prep companies such as direct deposit, pay by credit/debit card, fee out of the refund and advances against your refund.
How do we work?
We are operating under CDC guidelines with masks, separation of clients, desk screens, etc. Call us for an appointment and we will figure it out. If you like, make an appointment to come in and talk to us. If you don’t like where we are going, we just don’t do it.
We look forward to working with you!