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EIP #2 : 20 Million Taxpayers May Have To Wait Until Filing 2020 Return

Level 11

As the U.S. Treasury rushes to distribute second stimulus payments, many Americans learned this week that they will not receive the $600 until they file their 2020 tax return, a delay threatening additional hardship.

The Treasury has paid out about 68 percent of the payments so far, with millions of Americans receiving their $600 via direct deposit or a check in the mail. Yet, some Americans are still waiting to receive their money, and others will not receive any money until they file their 2020 tax return.

The IRS declined to say how many people are affected by the requirement to file a tax return before receiving a stimulus payment, but the National Consumer Law Center said it could be up to 20 million.

“The problem is this bill was passed right at the start of the 2020 tax season,” said John Koskinen, the IRS commissioner under President Barack Obama. “This has all hit when critical testing of the operations of the tax filing system are going on, and without delaying some checks, they can’t get it all done. But it’s not helpful to people waiting for money.”

https://www.washingtonpost.com/business/2021/01/06/tax-return-stimulus-check/

 

5 Replies 5
Level 15

I just saw that in the updated FAQ's.

This is going to be a nightmare.

Former Chump..umm... AllStar.
"the game of life is hard to play"

If a post answers your question, click on *Accept as solution* for future searches
Level 15

"Some who used TurboTax, Jackson Hewitt, H&R Block or another tax preparation service to file their 2019 taxes say they are among those who are not able to receive the second stimulus payment."

At least a few companies were able to get some free advertising out of that story 😀

ex-AllStar, ex-Lutefisk taste taster, ex-ACME product tester
and ex marks the spot where those rocks and anvils hit me.
Level 15

I know of people whose EIP 1 status is still pending, showing the IRS has their correct account details, will be processing the payment, and will update the status once it's made.

This is in spite of us being in 2021 and the deadline for payment under the CARES Act was Dec 31, 2020.  In reality, EIP 1 payment will no longer be made and these folks will just need to claim it on their 2020 returns.

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Still an AllStar
Level 2

So what you are saying is the additional $600.00 received in 2021 should be accounted for on the 2020 tax return as well as the earlier stimulus payment? 

0 Cheers
Level 15

Yes


ex-AllStar