Photo: Jason Raff (Shutterstock)
If you haven’t filed your 2020 tax return yet, now is the time. At this point, most extensions will expire on Oct. 15 and begin accruing late fees and interest. Worse yet, by not filing you’ll miss out on one-time payouts for the child tax credit and the first two stimulus payments. Even if you don’t earn enough money to require a tax return, it’s still not too late to get that money.
The extended deadline for 2020 tax returns is Oct. 15
If you already requested an extension beyond the original tax date of May 17, you have until Oct. 15 to file your taxes. After that date, money owed to the IRS will incur fees and interest. (And if you didn’t file an extension and owe money, you’re already being penalized). Some people can file their taxes later, however, like members of the military who are in a combat zone or those affected by a natural disaster (this includes victims of Hurricane Ida—more details can be found here).
Why you need to file a 2020 tax return to claim money
A 2020 tax return is needed for one-time COVID-related tax credits that are refundable, meaning that they’re paid out in cash if they exceed what you owe to the IRS for that tax year. The first two checks—worth $1200 and $600—can’t be used by the IRS to pay back taxes, although they can be used to pay overdue child support payments. The child tax benefit also offers a credit of $3,600 per child for most families. However, if you don’t normally file taxes due to low income (less than $12,200 for single filers), these credits will be left unclaimed.
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How you can still claim stimulus check money
At this point, the only way to claim the first two stimulus payments worth $1,200 and $600 is by claiming the amount as a “recovery rebate” credit in your tax return (the third payment will be calculated automatically using your 2020 tax return, but you can also use this portal if you don’t plan to file a 2020 tax return). While the IRS is encouraging people to file now, technically you can file your return within three years from the date the return was due (including extensions) to get that refund.
Additionally, if the IRS calculated your third stimulus payment using your 2019 tax return, you could qualify for more money as a “plus-up payment” if the IRS recalculates your total based on your 2020 return. Otherwise, if you don’t file your 2020 taxes, you’ll be stuck with the amount you got based on your 2019 return.
How you can still claim child benefit money
The child tax benefit in 2021 pays out a maximum of $2,000 to $3,600 per child (although it varies, based on your income), with half of that amount to be sent out as advanced payments on the 15th of every month until the end of the year (for more on eligibility, read this Lifehacker post).
The IRS says that it’s not too late to get the last two monthly advanced payments if you submit your 2020 tax information now. You can do that either by filing your taxes electronically or by using this non-filers tool designed for low-income earners that don’t usually file a tax return.
And again, because this credit will be based on your 2019 tax return if you haven’t filed a return for 2020, you could be missing out on money if your income has changed or if you’ve added a new dependent since 2019.
To file your taxes, consider using IRS Free File if you earn less than $72,000 in annual gross income. Also, you won’t be penalized for filing late if you don’t owe the IRS anything—a win-win if you still haven’t claimed your tax credits.
