Category: Stimulus Check

How To Claim Unpaid Stimulus Money On Your 2020 Tax Return

2/17/2021

hile many of us received both of our stimulus payments, for many Americans that was not the case. Today, we are going to be talking about how to claim your stimulus payments on your 2020 tax returns.

Tax season will officially be here on Friday, February 12th, and while all Americans are preparing to get their taxes in by April 15th, many are still waiting for one or both of their stimulus payments to arrive. Great news, the two go hand in hand! You can claim your missing stimulus money on your 2020 tax return. Even if you are a nonfiler, you are still able to file a 2020 tax return and receive your stimulus funds. Today, we are going to be talking about how best to do that and why you will want to file your taxes as early as possible to help benefit future stimulus payments.

How Do I Claim My Missing Stimulus Payments On My 2020 Tax Return?
While tax season might bring on stress and worry, take comfort in the fact that if you've not received one or both of your stimulus payments or you feel like you were not given the correct amount by the IRS, filing your taxes can help you take action to get the money you're owed!

Tax preparation companies, like Hoods, are already accepting returns. However, you can not begin filing until Friday, February 12th. The faster you prepare your taxes, the quicker you can file them. The quicker you file your taxes, the quicker your tax return and missing stimulus money will be returned to you!
When filing, look for line 30, which will be labeled as Recovery Rebate Credit. It will appear on both 1040 and 1040-SR tax forms. 1040-SR tax forms are for those aged 65 years and older. Nowhere on your taxes will it mention stimulus checks or economic impact payments, it will only be referred to as your Recovery Rebate Credit.
On line 30, you will need to list what you have been given in total from the IRS (even if that is $0) and what you are owed. It is as simple and as easy as that. This will then increase the amount of the refund you will receive or it will decrease the amount that you will owe the IRS. Do not include any other amounts, writeoffs, or tax credits on line 30. Only list the amount you are owed from missing stimulus money.
Please remember that the first stimulus payment was worth up to $1,200 per adult earning $75,000 a year and below. If you made more, the amount provided decreased. The payment for couples was up to $2,400 for those who earned $150,000 a year and below. The amount also decreased depending on how much more filing couples made together over that amount.
The second payment was up to $600 per individual and up to $1,200 per couple, depending on the same regulations and guidelines as the first stimulus.
For the first stimulus, individuals could also receive an additional $500 per child under the age of 17 and $600 per qualifying child in the second round of stimulus payments. If you did not properly claim your children or guardians or did not receive these funds in either stimulus payment, these funds are still available for you to claim in your 2020 tax return as well. Please add this amount to what you write in on line 30 of your Recovery Rebate Credit. Please also make sure to adjust who you claim on your taxes to avoid any other issues like this in the future.
You also might qualify for more money if your income or household size has changed. Stimulus payments were based on 2019 and 2018 income and household sizes. If this has changed for you and your family, it could mean you are owed more stimulus money.
Even if you don't normally file your taxes, according to the IRS, you must file a 2020 tax return to claim the credit that you're owed.
By visiting the IRS website, you can see when and how you were issued both payments. However, as of January 29th of this year, the Get My Payment page on the IRS website will no longer be updated for the first and second economic impact payments. If you are not provided with a payment date for either stimulus payment or have not received one or both, then you can claim your payments on your 2020 tax return.
Filing your tax return early might even help out with guaranteeing any future stimulus payments. While a third has not officially been set, the president has made moves to propose one and it is currently being discussed. Filing sooner might also guarantee that you receive all the money you're owed next time, meaning less hassle for your future tax filing and more money when you need it.
The current bill being proposed by the government could lower the income amount for those who receive the full stimulus amounts. For example, single filers who make $50,000 and below instead of those who make $75,000 and below would receive the full amount. So, filing now will help make sure that you receive your full amount of economic relief according to the 1st and 2nd payment standards.
If you do file sooner rather than later, the third proposed stimulus check could be paid properly and in full, and it will be based on your 2019 and 2020 tax return, whichever they have most recently on record. If you made less in 2020 or had a baby, and the IRS only has your 2019 taxes on file, your stimulus payments would reflect your status of 2019 and not 2020.
Please remember that the fastest way to receive your return and your missing stimulus funds is to file online and to have an active direct deposit account on file with the IRS. The IRS is saying that 90% of filers will receive their refunds in 21 days or less!
If you owe money to the IRS, the money you are owed from the Recover Rebate Credit will be applied to the debt. Even if you are still owed stimulus money, you might not receive all of it if you owe the IRS.
Please remember that you will not have to pay any taxes on any of the stimulus money you have received or any that you will receive in the future.

We know 2020 taxes and future stimulus payments might be difficult to navigate, but we are here to help in every way possible. If you are still concerned about filing your 2020 taxes or about receiving your stimulus payments, please don't hesitate to reach out! Please know that all of us at Hoods are here to help you, and we want to help you receive your tax return as quickly as possible! Please reach out to us if you'd like to begin working with us or have any questions or comments! Is there a topic about taxes that you would like to learn more about? Let us know and comment below! Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

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The Top Ten Best and Worst Things to Spend Your Tax Return On

5/1/2020

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It's tempting to use your tax return to buy something fun and exciting. It's also such a relief when those funds show up in your bank account. But, in a world that is very unsure and uneasy, it might be time to think practically when it comes to your tax return this year!

Hello Goose Creek! How are you? We hope you and your family are doing well, and we hope you know we miss you! Know that through everything we are here for you, and if there is anything we can do to help you, please don't hesitate to reach out to us! It was a much different April than any of us expected or could have imagined. Tax day came and went without much attention. For the first time since 1955, when April 15th officially became tax day, we didn't have to pay our taxes on that day. It was also the first time since 1955 that tax day was moved, this time to July 15th. It was very strange for us, of course. But, we know that for many families in Goose Creek, this might have been a huge relief! Did this help you and your family? If you still haven't paid your taxes, you do have time to do so. But, we do recommend that you do so as quickly as you can. This way you can receive your tax return quicker and possibly your stimulus check too if you haven't already!

Regardless, for every accounting service in Goose Creek and tax preparation in Goose Creek, this was a very strange April. Thankfully there are still plenty of great things to look forward to on the horizon. One of those great things being the appearance of our tax returns in our bank accounts or mailboxes. For many families, the appearance of this money comes with a lot of relief, bills being paid, and sometimes something very fun for the whole family. But, as we mentioned before, this April and the whole of 2020 has created quite a different dynamic for our everyday lives. As much as we love surprising the family with a new TV, A new car, or a family vacation, now might be the time to look at your tax return in ways you never have before. Being the best tax preparation service in Goose Creek, we wanted to share some of the best and worst ways you can spend your tax return. By doing so, we hope to help bring awareness to what is important right now, and what isn't. Please note, we are a family company. We love our town and want each of you to rise to the best of your abilities. We respect the freedom of your decisions but want to help you through these difficult times as best we can.

WHAT NOT TO SPEND YOUR RETURN ON!

The stock market has been tumultuous these past few months. Some view this as a great sign, while others are avoiding it like the plague. The market as a whole has been in a very unique and interesting flux. Some are calling this a buyers market and pressing people to buy now. Your tax return might be burning a hole in your pocket right now while you're sitting at home, but your tax return is not what you should be using to make a quick and hasty investment. Always make sure you research the investments you want to make and how to properly do so. Making a poor investment can lead to losing your whole tax return, and then some.
The decision to not spend your tax return and just let it sit in your bank account might seem like a wise decision right now. But let us convince you otherwise. Just letting it sit there can tempt you to spend it on all kinds of fun or unneeded items, helping it disappear before you know it. Delegate where your tax return is the most useful to your budget and your needs right now. Put some in your savings, get ahead on your bills, bulk up your emergency fund, and plan out your grocery trips based on this money. This way you're using your refund where you need it right now, and don't wind up in an even more difficult position than before.
One of the most obvious things not to spend your return on right now, and one that we've been hinting at, is a big splurge or big-ticket item. Think about it, most of these items or trips can't be enjoyed or used right now. A new car, unless it is needed, can add on a very expensive insurance policy you can't afford right now. Also, tax returns, just like a normal paycheck, don't last forever. As much as differing bills and payments have been helping right now, those bills aren't going away forever. Neither are your grocery bills, utilities, expenses, and gas expenses. A splurge can be very exciting for a short period, but it doesn't last forever.
We are online more and more every day for work, school, and play. Some of us are looking for a way to supplement lost income, get a new job, or ease our boredom. The world might have shut down, but there are still so many get rich quick scams out there waiting to pounce on you and your tax return, promising to double your money overnight. If it sounds too good to be true, it is. Avoid buying into these companies regularly, but avoid them now even more in particular.
Expanding on the idea of those 'get rich quick' ideas, avoid gambling online or other pay to play games online. It might be a fun and exciting thing to do while we're all at home, but it's just as easy to lose it all from the comfort of your living room as it would be in Las Vegas. Also, avoid spending your return on scratch-off lotto tickets and the state lottery in general.

WHAT TO SPEND YOUR RETURN ON!

Buy groceries and other essential items. Hoarding these items is not helpful or necessary right now. But, buying a larger quantity of groceries and important household items than you normally would can help limit the number of trips you're making outside of your home. This can help keep you and your family members healthier and safer.
Catch up on your bills and try and pay ahead. Like we mentioned above, these funds won't last forever, while your bills will. Help yourself by getting ahead as much as you can, and stay prepared.
Like we have mentioned in our past few blogs, keeping up with paying into your retirement fund and leaving it alone right now is very important. If you haven't been able to do so because of the change in your financial situation, take the opportunity to do so now!
Everything is so unknown right now, the job market is very unsteady, and hurricane season is right around the corner. Using this money to bulk up your emergency fund can help you make it through these unknown times now, and once hurricane season shows it's ugly face.
Now is a great time to invest in yourself and your home. Thanks to online education, you can still sign up to finally finish your degree or start the new degree you've been dreaming of. We also offer Quickbooks training and services, which is a great investment for your personal and small business finances. Thanks to online shopping, you can still order those appliances you've been needing to replace or those materials you need to finish up all of your home makeover projects. It is also the perfect time to support local companies! Hire small companies to do all those repairs you've wanted that are just beyond your skill sets. Support local businesses of all kinds if you can, you're investing in your community and helping it stay strong and united.

Money can be a difficult and tricky topic, but it doesn't have to be. We hope these tips help you and your family through this difficult time. Remember if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

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Managing Your Money Now

4/17/2020

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Money for many of us is tighter in new ways than we could ever have imagined. How can you make life a little easier while you adapt to the changing world around you?

It seems strange that while the world is turned on its head and we are living differently than we ever have before, there are still bills to pay, groceries and important items to buy, and other possible expenses heading our way. Before your tax return shows up and the stimulus check appears in your bank account, money might be very tight at the moment. For those of you who have been put on furlough or have been laid off from your job and you're now depending on an unemployment check or your savings, these times are even scarier. For those who don't have unemployment or savings, these times could be very dire. We understand, and we sympathize with you. With these changing times, we wanted to share a few tips and pieces of advice to help manage your money while the world is on hold. We hope these tips and suggestions help while you wait on your tax return, your stimulus checks, and to head back to work.

Pause every streaming service, monthly subscription, and monthly subscription box that you don't need right now. If you're streaming on Netflix, Prime, Hulu, Disney Plus, HBO, Apple TV, and beyond try and pair it down to one or two. Share an account with someone and split the price. Those fun little things in the mail and those services you don't use every day can add up, cutting back on a few or all of them can put some much needed money back into your pocket.
Call all of your credit card and loan companies and explain your situation to them, and see if they can help you in any way. Many companies have already jumped at the opportunity to help their clients. Some are not charging interest through the months that have seen shutdowns, stay at home orders, and closures. Others are working case by case. They could offer you more time to pay back what you owe so debt doesn't begin to pile up and your credit score doesn't start to plunge. It might take some time to get through to talk to someone on the phone since so many people are dealing with handling this situation. But, it's worth the wait. You're home right now anyway! Not paying your bills and not contacting the people you owe money to isn't a choice. Call them and they can and will more than likely want to help you as best they can.
As much as we adore supporting local companies and whole heartily support you doing the same, pick and choose how often you're eating out. Although many apps are eliminating delivery fees, some of our favorite restaurants can still cost a pretty penny when we get our takeout and delivery meals. That includes your fancy coffee drinks that you might still be getting too. We understand that these treats are needed to make you feel a sense of normalcy, but be smart about it. Try and cook most of your meals at home. This will save you money and help you follow social distancing and the work or home orders even better!
That being said, if you are financially able to without any issues or worries of being strapped for money down the line, we do suggest supporting local businesses. Keeping the economy as flush as possible will help the return to normal business. This will also help a ton of people who still need help paying their bills. There are some restaurants and businesses that are offering perks if you buy gift cards from them while they are currently shut down. You might not be able to use the gift cards right now or enjoy their services, but some of the perks that come with the purchase can be special.
You're working from home right now, right? You now have a designated part of your home that is your office, and you are using your phone and internet to help workers throughout the day. Do you know what that means? Tax write-offs! Be very vigilant in keeping track of all of your business expenses while you're working from home. It might not help you right away, but it could be a big payoff for next year's taxes!
If you haven't already, file your taxes sooner rather than later. As we have discussed in recent blogs, tax day has been officially moved from April 15th to July 15th. Although that might be a relief to you so you don't have to pay what you owe right now, getting your taxes in sooner means getting your refund quicker. This will help boost your bank account for a bit in between receiving your stimulus checks, and your unemployment money, or even your current salary. If your income from 2019 is lower than that of 2018, you could be receiving a larger amount in your stimulus check, too!
Always be prepared. None of us are sure when this will all end and when our finances will return to normal. If at all possible, keep adding to your emergency fund and don't touch it until you have to. Also, keep saving for your retirement. We know that might be the last thing on your mind right now, but just like staying up to date on your bill payments, paying into your retirement needs to remain just as important. You don't want your future finances to be destroyed by what you're going through right now if you can help it.
It has also be recommended to leave your stock portfolio alone. The rise and fall of the stock market has been intense to watch recently, and for many, it has been very tempting to cash out now for fear of what could happen net. But, try and hold onto it! When we get back to business, can you imagine how the stock market will rise and prosper? It could very well be in your best interest to hang on.
Try and avoid touching your IRA or any other retirement savings. It is very hard to think about your finances in the years to come right now. But, even though you might need the money now, you don't want to put yourself in a difficult position later down the line. There are other options. Avoid touching this money until you have to. Your future self will appreciate it.
We have all felt the need to rush out and stock up and stockpile everything we think we need to get us through whatever else could be next. There is some merit to stocking up, but overbuying out of panic can put you in a financial pinch. Overbuying can lead to a lot of food going bad, and flushing money down the toilet. This can put a huge strain on the budget you're working with. Be smart when making your grocery trips and be mindful of what you need.
We are saving so much money on not getting our hair and nails done, not going shopping, not buying gas, or even eating out as often. Put all of that extra money into your emergency fund!
Retail therapy will be very tempting. We are all at home on our phones or computers killing time or working, and those advertisements for our favorite products will continue to pop up. It will be so easy to shop online even more now, but try and curb those cravings.

At the end of the day, the biggest thing you need to focus on is to not panic and to make wise decisions. Panicking can lead to some very drastic decisions, especially when it comes to your money. Please remember we are all going through this together. We are here to answer any questions you might have or to advise you during this difficult time. We are still here to offer everyone in Goose Creek the best tax services too. Please don't be a stranger. Give us a call or email us, we will figure out your next best step, together!

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Hoods Tax &
Accounting Blog

How To Claim Unpaid Stimulus Money On Your 2020 Tax Return

The Top Ten Best and Worst Things to Spend Your Tax Return On

Managing Your Money Now

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​Hoods Tax & Accounting Blog

How To Claim Unpaid Stimulus Money On Your 2020 Tax Return

The Top Ten Best and Worst Things to Spend Your Tax Return On

Managing Your Money Now

Author

Archives

Categories

Hoods Tax &
Accounting Blog