As July ends, so do some of the provisions provided by the CARES Act meant to protect Americans during these uncertain times. The $600 additional aid for those on unemployment ceases at the end of the month, with many states sending final payments the week of July 26th. Additionally, those who are renting their home lose special protections at the end of the month. With these vital CARES act provisions coming to an end, there is pressure on Congress and the Senate to pass an additional aid package. Many Americans also believe this third aid package should come with a second $1,200 stimulus check.

  For many, the last stimulus check came in the nick of time. For others, it felt like a complete lack of awareness of the impact coronavirus has had on their families. Some lost their jobs, or saw a reduction in pay, yet never received a stimulus check. How did this happen, and can you avoid it if there is another round of payments? 

  Because the advanced tax credit reflected your 2019 income, the financial difficulty Americans felt from the coronavirus was not reflected in the information the IRS was collecting. You read that correctly, the payments received were an advance on a tax credit for tax year 2020. That means if you did not receive a stimulus check, you might still receive the tax credit.

  Unfortunately, that means you will not receive the aid until you file your 2020 tax return. The miscalculation in the tax credit is particularly important for those who believe they could have claimed a child dependent in 2020, that was not reflected on their 2019 tax return. 

If you feel your stimulus check did not reflect the true impact coronavirus had on your income, be sure to save Notice 1444 sent to you by the IRS. For our clients, you can save this form in the vault of your Twin Rivers Client Portal. Or, upload to your Twin Rivers Sharefile account. If you have any questions about the stimulus check amount you believe you should have received, please do not hesitate to contact a member of our team.