Are you sure you want to delete this post?
2020 was a tough year for many people, but that toughness may wind up being a small (or big) help when you go to file your taxes in the coming days and weeks. While there are multiple ways you can lower your tax liability, the two virus-related ways are by claiming one or both stimulus checks you didn't receive and determining your eligibility for the Earned Income Tax Credit.
1st and 2nd Stimulus Checks:
Two rounds of stimulus checks were passed in 2020, but not everyone who was eligible for one or both actually received them. If you are financially eligible to receive one or both checks and didn't then you can claim that amount when you file your 2020 taxes.
Another way you may be eligible for a stimulus check is if your annual income changed by a lot in 2020. Let's say you earned too much money in 2019 to qualify for the stimulus checks when they were passed, but lost your job (or had your hours reduced) and didn't earn as much in 2020. If you earned less than $75,000 as a single person, $112,500 as head of household or $150,000 as a married couple in 2020 then you may qualify for the full amount of both stimulus checks. If you or your family earned more than that amount but less than the maximum amount allowed for each check then you can still claim what you are owed. Those with qualifying dependent children could receive even more.
Additionally, if you got a divorce in 2020 and the IRS still had your tax information for when you were married on file then you can claim one or both stimulus checks if you meet the income requirements as a single person.
In order to get your 1st and/or 2nd Stimulus check or if you got a divorce before receiving one or both checks then you must claim the Recovery Rebate Credit when you file your 2020 Federal income taxes.
Earned Income Tax Credit:
If you experienced a major drop in income in 2020 then you may be eligible to claim the Earned Income Tax Credit when you file your 2020 taxes. This credit is for low-income households who earned less than a certain amount each year.
In order to be eligible for the EITC you must have earned no more than $21,210 if you are a childless married couple, but those with dependent children can make even more in order to qualify for the maximum amount of $6,660.
Taken together, these have the potential to really help those who need it the most. Is anyone else aware of any other way to ensure you get the maximum amount of virus relief when you file your taxes this year? These were the only two I could find that were related to our current troubles, but it would be great to see if there are more.