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9 Reasons You Should File Your Taxes NOW!

Recovery Rebate Credit

You can claim what is known as a Recovery Rebate credit on your 2020 tax return if you did not receive your first or second stimulus checks, but you could also claim this if you didn’t receive the full amount.

If the combined total of the first two stimulus checks are less than the amount of your Recovery Rebate credit, you should expect the difference on your 2020 tax return. That’s because the first and the second stimulus payments, $1,200 and $600 respectively, were actually advance payments on the credit.

Two things can happen. You’ll either get a refund or you will lower your overall tax bill. As we said earlier, if you file your return sooner, you’ll also see this money faster if you’re getting a refund.

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A.S.

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