Claim missed stimulus money from life changes with 2020 tax credit
Having a baby in 2020 or becoming a first-time filer could shape stimulus payment outcomes. H&R Block can help people access missed stimulus payments through tax filing.
At a time when people are struggling financially in the wake of the COVID-19 pandemic, some Americans may have also missed out on their full first and second stimulus payments, money intended to help during a critical time. New parents and recent graduates could have unknowingly missed out on stimulus money.
“Our tax pros can help people understand their situation and decide if claiming the Recovery Rebate Credit is right for them,” said Julius Lai, H&R Block’s chief product and experience officer. “The experience and care that our 60,000 tax pros bring to each client means there isn’t a tax situation too complex for us to help navigate.”
Reasons someone could receive additional stimulus money with the Recovery Rebate Credit
- Unemployed or reduced income in 2020. For people whose income was above the income caps for the first and second stimulus payments but whose income was reduced in 2020 to under the income caps, additional stimulus payments via the 2020 Recovery Rebate Credit may be available. To understand more about the tax implications of unemployment benefits, visit H&R Block’s unemployment and taxes resource center.
- Expanded family with a new child. Many things happen in life that the IRS doesn’t know about until a tax return is filed including having a baby, adopting, or fostering a child. Approximately 3.7 million babies were born in 2020 and roughly 140,000 children adopted. Families who added a child not previously claimed as a dependent on their tax return, may be eligible for additional stimulus money.
- First-time filers like recent college graduates. According to the Department of Education, 5.7 million students received high school or undergraduate degrees in 2020. Those starting careers will become first-time filers and likely can’t be claimed as a dependent, possibly making them eligible for stimulus money. For example, if a college graduate was a dependent in 2019, graduated, and moved out on their own and started a new job, they are likely eligible for the 2020 Recovery Rebate Credit.
For help in understanding a tax situation and to find out more about who may be eligible for additional stimulus money, find a tax pro at hrblock.com. There is no additional cost for claiming a Recovery Rebate Credit whether a client chooses to get help from our experts or to do taxes on their own, including with H&R Block Free Online.
Get tax advice about unemployment benefits and how they may affect you when it comes time to file your 2020 taxes. Read more.
Certain tax benefits may help you as you transition from one job to another or from unemployment to the workforce. Review this list from H&R Block’s experts.