Claiming Your Missing or Incorrect Stimulus Check Payment in 2020-2021 Tax Returns as a Recovery Rebate

It was a pretty common sentiment a few months ago that the IRS had missed paying millions of people their $1200/$2400 economic stimulus payment and especially the $500 child stimulus payment. Many of these reasons are well documented and range from lack of staff availability to major system issues. While the IRS was able to work through many of the original issues and make payments, their longer term solution to address missing or incorrect stimulus checks was for those impacted to claim the missing or underpayments in their 2020 tax return as a refund, filed in 2021 (see expected 2020-2021 tax refund schedule).

The IRS has delivered about 160 million payments totaling approximately $270 billion (and, according to TIGTA, the IRS correctly computed the EIP amount for 98% of the initial 157 million payments that had occurred at the time of their report). There have been more than 200 million successful status checks on Get My Payment, and more than 14 million people have successfully provided their banking information to get their payment via direct deposit.

IRS

While the IRS has extended the window for non-filers to claim their 2020 stimulus check, if you did not receive the full amount to which you believe you are entitled, you will only be able to claim the additional amount when you file your next tax return. This is being classified as a recovery rebate.

Recovery Rebate – Claiming your missing stimulus check payment in your 2020 Return (Filed in 2021)

Taxpayers can claim their missing stimulus payments as a recovery rebate credit on their 2020 tax return filed in 2021 if they didn’t receive a payment or if their payment wasn’t the correct amount.

When people file their 2020 taxes next year and they weren’t eligible for an Economic Impact Payment in 2020 (because their 2018 or 2019 income was too high), they may still be eligible for the Recovery Rebate Credit in 2021. The Recovery Rebate Credit is figured like the Economic Impact Payment, except the amounts are based on tax year 2020, instead of tax year 2019 or tax year 2018, information. The eligibility criteria are the same, and the maximum credit is $1,200, or $2,400 if married filing jointly, plus $500 for each qualifying child. This means anyone who received the full Economic Impact Payment amount during 2020 for both themselves and their qualifying children cannot get the credit again in 20201 (that would be double dipping!)

Claiming or fixing an incorrect stimulus check payment

The IRS has sent notice 1444, Your Economic Impact Payment, to eligible recipients (per their system records) that outlines their Economic Stimulus Payment details. You will need this notice when filing your 2020 tax return next year to claim any missing stimulus payments you were eligible for – which will be considered an additional tax credit known as a recovery rebate.

The credit can be claimed on either Form 1040 or Form 1040-SR. The 2020 instructions for these forms will include a Recovery Rebate Credit worksheet to help determine eligibility and figure the credit.

Do I Need to Pay Taxes on my Stimulus Check Payments?

Per the IRS, NO. The payment is essentially an advanced refundable tax credit so is not part of a tax payers gross income. Therefore it is not taxable and no income tax is due on this payment in 2021, when you file your 2020 tax return. If you are entitled to other credits and/or refund payments, this stimulus/economic impact payment won’t reduce your refund or increase the amount you owe either.

The stimulus check payment will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs. However the IRS will reduce the stimulus payment to offset past-due child support

Children born or adopted in 2020 or Change in Dependent status

You will also need to claim the $500 kiddie stimulus payment via your 2020 tax return if you had or adopted a child in 2020 or there was a change in dependent status since your latest IRS tax filing. All eligibility criteria still need to be met when claiming this. Also if your qualified child is only turning 17 this year you can still claim them.

The IRS will post additional guidelines on claiming your missing stimulus check payments in your 2020 tax return and I will post updates when available. I encourage you to subscribe below to get the latest updates.

This article was updated on November 17

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11 thoughts on “Claiming Your Missing or Incorrect Stimulus Check Payment in 2020-2021 Tax Returns as a Recovery Rebate

  1. i never received my $500 stimulous check for my child dependent and have claimed her on my taxes for over 10 years will i receive the money that is missing

  2. The missing may 22 checks were a glich in the system is what they say. But IV waited over 10 weeks was told I had to trace the check so I went threw all steps. To have the IRS tell me. That the checks were never sent. So now I wait to next year I guess to see if I will get it Wich means when the second one comes out. That won’t come either. O and I got to say that they have no plans to fix these issues. Sorry to be the one to tell the bad news.

  3. Has anyone traced missing stimulus payment and receive payment yet. I traced mine 9 weeks ago still nothing happen

  4. IRS sent stimulus check May 22, 2020 but check never arrived. I filed IRS TRACE form 2 weeks ago and have not yet received a response. It is 51 days since the date stimulus was to be sent. Please help me.

  5. The Notice 1444 letter didn’t say it needed to be kept for tax reasons so I pitched it. They didn’t include the $500 child payment so I need to claim it on my taxes for 2020. However, I didn’t keep the Notice 1444, so does that mean I won’t be able to claim it on my taxes? No one I know kept their letters either so I would think that could be an issue come tax time.

  6. i”ve been unemployed for like 12 weeks,i only receive checks for only 3 weeks.What should i do?

  7. My question is I have received the letter saying that I was going to receive an Economic Impact Payment of $1,200.00 by direct deposit. As of right now I check my bank an nothing was come in yet. Well I be receiving it on a later date.

    Thank You
    Benito Ortiz Jr.

  8. What about the people who receive SSI or SSDI who do not file income taxes ? Where do these folks find out about their missing Cares Act Stimulus of $1200 ?

    1. I filed my taxes in 2018 and 2019 I moved in Sept of 2019 and my check was sent to the address on my 2018 taxes I suppose they dont think might move from time to time or year to year. I have been trying to get hold of someone live for over a month with no luck. I find phone numbers but no one live to speak to, just recordings which are no help.

  9. i have filed my income tax in March and waiting on a refund from that…….are tax refunds held up too.

  10. Why can’t they track/ re-issue a stolen/lost/missing check?? What happens if the check shows as cashed and the true person never received? How does a person show they are a victim of theft?

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