Americans can take the opportunity to find relief when they file their tax returns this year as a result of the Chinese Communist virus (Wuhan pneumonia) pandemic.
The Internal Revenue Service (IRS) is opening the door for people to file their 2020 personal income tax returns this Friday (February 12). Americans who have not yet received a relief check for the CCP virus (Wuhan pneumonia), or who did not receive the full amount of the relief, can use this opportunity to file to recover their fair share of the money.
The CARES Act, passed in March 2020, provides cash payments of up to $1,200 for adults ($2,400 for couples filing jointly); $500 for each child under 17. The $900 billion CPC virus relief package passed in late December provides an additional payment of up to $600 per adult ($1,200 for couples filing jointly); and 1,200); and up to $600 for each eligible child under age 17.
The first bailout check is based on a 2018 or 2019 tax return; the second check is based on a 2019 tax return. However, millions of Americans lost their jobs or had their incomes reduced last year because of the plague pandemic. This means that many people who did not initially receive relief based on their 2018 or 2019 tax returns may now be eligible to apply.
If you believe the IRS owes you relief, you can use the Recovery Rebate Worksheet on your 2020 Form 1040, or 1040-SR, to calculate how much money you should receive and enter that amount on line 30 of your tax return. At that Time, the IRS will include your relief payment in your tax refund check.
“Claiming relief by completing your tax return will not cost you anything and will neither increase your taxes nor reduce your tax refund. Creditors cannot garnish your second bailout payment, and the government will not garnish it for your unpaid support.” AARP (American Association of Retired Persons) cautions.
Any money an individual receives from the IRS and Treasury Department in the form of direct payments is not subject to income tax. Under the rules, the money is considered tax-free income and is eligible for a refundable tax credit.
The IRS has opened Free File, a free online tax filing software, for taxpayers earning less than $72,000 to prepare and file their income tax returns. Americans can also use the tool to claim their relief checks.
The tax day deadline remains the same this quarter, April 15.
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