How to track delayed stimulus payments before tax season
COLUMBIA, S.C. (WIS) - Millions of Americans across the country are still waiting on their stimulus checks, and if it’s not on the way according to the IRS’ website, you’ll have to claim it on your tax return.
Some people are reporting they are receiving the message “Payment Status Not Found” when tracking their payment through the IRS’ “Track My Payment” online tool.
The agency says if the payment does not make its way to you, eligible citizens will have to claim a “Recovery Rebate Credit” when filing taxes for 2020.
Tax strategist Terrell Martin added, “if you didn’t get the rebate, the stimulus payments, you may be able to claim it and get an additional refund or reduce the liability on your 2020 tax returns.”
However, claiming a “Recovery Rebate Credit” on Form-1040 of your tax return means you won’t see that money until your taxes are filed.
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And, notable for this year, while the stimulus money is not taxable, unemployment benefits are.
“A lot of people who got unemployment never got unemployment before,” Martin said, “so this is a new area for people…unemployment benefits are taxable and there was an opportunity to sign up for voluntary tax withholding on it but withholding was only 10 percent which may not be enough to cover that full income.”
Martin says the best course of action is that if you did not take taxes out of unemployment benefits, you might want to hang onto your latest stimulus just to make sure you have the payment difference covered.
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