Did you miss out on the first round of stimulus checks sent to Americans in April 2020?
The most likely reason you missed out on the $1,200 was because someone else claimed you as a dependent on their 2019 or 2018 tax return.
I’ve heard the same story over and over again. Undergrads or even graduate students under the age of 25 missing out on an economic impact payment because their parents could still claim them as a dependent. Rightly so for the parents footing the bill for living expenses and tuition, but an unexpected downfall for poor college students.
Fortunately, for twenty-somethings who can no longer be claimed as a dependent by their parents in 2020, you may qualify to receive the Recovery Rebate Credit when you file your 2020 Tax Return in the coming months.
How does it work?
As long as you qualified for an economic impact payment in 2020 (meaning you made under the AGI limit and you cannot be claimed as a dependent) you may receive the full $1,200 you would’ve received in April. The $1,200 may be increased if you’re owed a tax refund or reduced if you owe money.
Be sure to talk with your tax preparer and make them aware of the fact that you did not receive a stimulus payment and you may now qualify for the credit!