"People should visit IRS.gov for the most current information on the second round of Economic Impact Payments rather than calling the agency or their financial institutions or tax software providers. That way, customers did not need to pay tax preppers out of pocket. The bank numbers that these taxpayers see on the IRS's website belonged to tax preparation firms and were used to take out fees for tax prepper, Nassif said. But preparing for tax season could have impacted this effort. The IRS originally said that those who filed 2019 tax returns and provided direct deposit information or those who successfully registered for the first payment on IRS.gov would get automatic payments. Click here for more information on the Recovery Rebate Credit.Īmericans should claim the credit based on their 2020 earnings, not 2019 filings like the first round of checks, according to the IRS. Individuals and married couples filing jointly can also claim the Recovery Rebate Credit if they did not receive the full amount of the first stimulus payment. Taxpayers will see unclaimed stimulus funds referred to as the Recovery Rebate Credit on Form 1040 or Form 1040-SR of their taxes. Technically, the second stimulus check is an advanced payment of this tax credit, according to the IRS. Instead, they need to claim it when they file their 2020 taxes this year. The IRS announced Tuesday that eligible Americans who see a status that reads "Payment Status #2- Not Available" will not get their second stimulus check via direct deposit or through the mail. The Get My Payment tool on IRS.gov is designed to show the statuses of the first and second stimulus payments. Here's what you need to know about the tax credit and stimulus check problems people are facing: What does "Payment Status Not Available" mean? And what is the Recovery Rebate Credit? The IRS said some of these taxpayers will not receive a second Economic Impact Payment and instead, they need to claim the Recovery Rebate Credit on their 2020 tax returns. Yet people have reported a range of problems with receiving these funds, from cryptic messages on the "Get My Payment" tool to checks being sent to the incorrect bank accounts. NEW YORK - As millions are receiving their second round of stimulus checks, some eligible Americans won't and need to claim the $600 on their 2020 tax returns, according to the Internal Revenue Service.įunds were officially available Monday and will continue to go out through mid-January, according to the IRS. While the IRS is sending out the second round of stimulus payments, some are reporting problems with the money being deposited into a bank account they don't recognize.
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