Stimulus Payments and Recovery Rebate Credit Since the new year started and people began to file their taxes, confusion on how to properly report the first and second round of stimulus checks from 2020 has grown significantly. This is because some people did not receive their checks until this year, making them believe they don’t have to file these until 2022. However, it is important to keep in mind that the IRS understands this and has taken this into account through the Recovery Rebate Credit. Filing Your Taxes
SUDOKU
WHAT IS IT? As defined by the IRS, the Recovery Rebate Credit “was eligible to be paid in two rounds of advance payments during 2020 and early 2021,” also known as the first and second Economic Impact Payments or stimulus checks. In simplest terms, it’s a tax credit against a person’s 2020 income tax that will either increase tax returns or decrease the amount owed to the IRS. WHAT IS THE AMOUNT? In short, this credit can give eligible individuals up to $1,200 and married couples up to $2,400. This may change depending on how much a person
ENGLISH GROUND BEEF PASTIES
was to receive in their payments. These payments included the $1,200 ($500 additional for each qualifying child) received in 2020 and $600 ($600 additional for each qualifying child) in early 2021. Anyone who has received these full amounts from the Economic Impact Payments does not need to complete information regarding the Recovery Rebate Credit on their tax files. WHO CAN CLAIM IT? Anyone who has not received the full amounts of both stimulus checks can file a claim. In order to be eligible for the Recovery Rebate Credit, you must:
• 3/4 lb ground beef • 1 medium onion, diced • 2 medium potatoes, peeled and diced • 2 sheets store-bought puff pastry dough
• 1 tsp dried parsley • Salt and pepper, to taste • 1/4 cup beef broth (as needed)
1. Preheat your oven to 400 F and line a baking sheet with parchment paper. 2. In a large bowl, combine the beef, onion, and potatoes. 3. Roll out the pastry dough into roughly 10-inch circles or squares. 4. Spoon 1/2 of the beef mixture onto each sheet of dough, then top the mixture with parsley, salt, and pepper. 5. Fold the edges of the dough over the filling, pinching each pasty shut and tucking in both ends. 6. Transfer the pasties to the prepared baking sheet, then cut several small slits in each pasty for ventilation. Bake for 45 minutes. 7. Remove the pasties from the oven and reduce the heat to 350 F. Spoon 1 tsp beef broth into each slit, then bake for an additional 15 minutes. 8. Serve and enjoy!
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Be a U.S. citizen or resident immigrant in 2020 Not be a dependent of another taxpayer
• Have a valid Social Security number issued before a 2020 tax return
Additionally, you must also complete the Recovery Rebate Credit Worksheet for Form 1040 and 1040-SR, regardless if you are required to file a tax return or not. Instructions on how to complete the worksheet will be included with both forms.
If you have any questions on how to report your stimulus payments for 2020, schedule a consultation with Tim Thompson today.
877-829-7847 3
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