How To Claim A Stimulus Check On Your 2020 Taxes
A stimulus check is technically a refundable tax credit called the Recovery Rebate Credit. Both rounds of stimulus payments are combined into one credit. The third stimulus check is treated separately.
A tax credit is a dollar-for-dollar reduction of your tax bill. A $1,000 credit, for example, cuts your tax bill by $1,000. Some tax credits are refundable, meaning if you don’t have a tax bill large enough to use the full credit, you get the money as a refund. That’s how the recovery rebate credit works. But in order to get the credit, you have to file a federal tax return, even if your income is too low to be taxable.
Latest Stimulus Package Helps More College Students
FILE In this March 14, 2019, file photo students walk on the Stanford University campus in Santa Clara, Calif.
In the third round of COVID-19 relief, college students and their families could see more money in their pockets than before.
The $1.9 trillion American Rescue Plan Act, signed by President Joe Biden on Thursday, provides students with immediate and long-lasting financial benefits, including:
- Relief checks, even for dependent students.
- Emergency financial aid grants from their schools.
- Child tax credits for students who have children.
Students were largely left out of earlier relief bills. Connel Fullenkamp, an economics professor at Duke University, says thats because students are overlooked by politicians.
Fullenkamp says he thinks the latest relief package could have a significant and much-needed impact on students. We are not going to pay their tuition, but we can help defray some of the costs of living, Fullenkamp adds.
Here are the details on what college students can expect from the relief package.
Free Application For Federal Student Aid As A Stimulus Check
The FAFSA or the Free Application For Federal Student Aid has been opened to college students who would be attempting for the 2021-2022 school year. According to Local 12, it was reported that the deadline for this particular application was the 30th of June, 2022. If there is any correction that needs to be made for this stimulus check application, the applicants can take their time and submit it latest by the 10th of September, 2022.
However, the news channel has reported that it would be better to apply early. Those students who have planned to apply for the next school year may also start filing their applications.
The applicants that would be deemed eligible are usually U.S. citizens and eligible noncitizens. The Federal Student Aid stimulus check usually includes eligible noncitizens from American Samoa or Swains Island, a permanent resident of the country, or an individual who has an Arrival-Departure Record from the U.S Citizenship and Immigration Services which would show most of their designations, making the process much easier.
The type of stimulus check financial aid that comes under the FAFSA are grants, loans, and work-study. According to Local 12, this is simply a gateway to around $150 billion in aid which would help pay for a higher education- which also includes grants, scholarships, federal student loans, and work-study.
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Two Things To Know However
But before you order pizza, there are two catches one, the money goes to mom and dad and two, if they earn more than a combined $160,000 a year, you still wont qualify. No matter how broke you feel.
The newest stimulus package does not include student loan forgiveness, but there is a chance that could happen later this year.
How Can A Dependent Get The $1400 Stimulus
In theory, primary taxpayers receive stimulus money for their dependents because they’re financially supporting them. Legally, the $1,400 doesn’t “belong” to the dependent even though they may be the reason the sum is being sent.
But there are always exceptions. So, how can you fix this? Are dependents powerless to get their own stimulus checks?
Per the text of the American Rescue Plan, dependents don’t qualify for their own stimulus checks. The law specifically defines an eligible individual as anyone who’s not a nonresident alien or an “individual who is a dependent of another taxpayer” for the year in question.
Solutions are slim. If you cannot be claimed as someone elses dependent, then you could file your own tax return. But the law forbids people from being “taken into account more than once,” including “by reason of a change in joint return status or dependent status” between two years.
There is also a timing issue to be aware of. Stimulus payments are going out now based on people’s 2019 and 2020 tax returns. The IRS is planning to adjust payments this summer and next tax season.
All of that considered, your best bet may be to politely asking the taxpayer who claims you to pass along the funds.
This story has been corrected to include more accurate information about federal income taxes and filing status.
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College Students May Have Missed Out On Coronavirus Stimulus Money
College students first need to know that not every student is eligible for coronavirus relief. Only self-supporting students who are not declared as a dependent on their parents tax return can claim the $1,200.
Unfortunately, many college students who are eligible didnt get their payment because the IRS used data from tax returns in 2018 or 2019 to determine who should receive stimulus money. And a substantial number of self-supporting college students who are eligible for payments didnt file tax returns in either year because their earnings were under the income threshold required to file. Its these students who need to act before Nov. 21 to get their money.
College students in particular should be careful not to overlook these payments if theyre supporting themselves and cant be claimed as a dependent on someones tax returns, advised IRS Commissioner Chuck Rettig. A few minutes of research could really help students.
The IRS also notes that recent college graduates whose parents previously claimed them as dependents may also be eligible for a payment if their parents do not claim them in 2020. Recent grads in that situation also need to file a tax return in 2021 to obtain the coronavirus stimulus money the CARES Act authorized.
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Can College Students Get A Stimulus Check
While over 80 million Americans have received their stimulus checks via direct deposit already, many college students are still wondering if theyll be receiving their money anytime soon.
And while those $1200 stimulus checks, which are being sent to people earning less than $75,000 a year, would certainly be helpful to pay for books, housing and other essential needs, most college students wont be receiving any cash.
Under the CARES Act, college students between the ages of 17- 23 are ineligible to receive a stimulus check if they are claimed as a dependent on someone elses federal income taxes.
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Who Qualifies For An Eip3
As with EIP2, U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayers return generally qualify for EIP3. Married couples filing jointly with only one SSN can qualify too, but only the spouse with the valid SSN will qualify for a stimulus payment . For example, a married couple with two kids would qualify for up to $4,200 if only one spouse has an SSN.
Nonresident aliens, adult dependents, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP3.
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The First Stimulus Check
Under the CARES Act, as a single filer, if you earned up to $75,000 a year then you should have qualified for the full $1,200. If you have qualifying dependent children age 16 or younger, you were able to get an additional $500 for each.
If you earned more than $75,000 a year, then your $1,200 benefit was reduced. If you are married filing jointly, the phaseout started at $150,000. The stimulus payment completely phased out at $99,000 for single taxpayers, $136,500 for those filing as Head of Household, and $198,000 for joint filers with no kids.
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You Are Eligible For A Student Stimulus As An Independent If:
Turned 24, graduated, or started working in 2020: some college students may have received their diploma, married, or turned 24 years of age in 2020. If you have started work and/or moved out of your parents house, you would be most likely eligible for a $1,800 stimulus check . You are eligible because of your lifestyle change between 2019 and 2020.
However, there are other criteria to be met before you can apply. They include:
- You must earn up to $75,000 as a single adult or $150,000 as a couple. You would not get the stimulus if by the first round you have earned more than $99,000 as a single adult and $198,000 as a couple.
$1400 Stimulus Checks Headed To College Students It Depends
According to the IRS, it depends. If one is defined as a dependent college studentmeaning parents claim him or her on their income tax returnthe individual who claims the student can get up to a one-time $1,400 stimulus check. Then it would be up to the parent to decide whether or not to pass on those funds to their child.
In an enormous effort to provide much-needed cash to millions of financially struggling Americans, the Internal Revenue Service has sent out one hundred fifty-six million coronavirus relief checks worth $372 billion under the American Rescue Plan.
Working and unemployed adults and parents are surely eligible for the direct stimulus payments, but can students who are currently enrolled in colleges and universities also get their hands on the cash?
According to the IRS, it depends. If one is defined as a dependent college studentmeaning parents claim him or her on their income tax returnthe individual who claims the student can get up to a one-time $1,400 stimulus check. Then it would be up to the parent to decide whether or not to pass on those funds onto their child.
However, if the student is deemed financially independentmeaning that they are able to provide more than half of their own financial supporthe or she may indeed be eligible for that third stimulus check.
But like the rest of the adult population, keep in mind that there are income thresholds to meet in order to qualify for the direct payment.
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Question: I Was Claimed As A Dependent In 2019 But I’m Filing My Own Tax Return For 2020 Can I Get A Stimulus Check
Answer: Yes, as long as you meet the income requirements and have a Social Security number.
Adult dependents including college students and retirees were left out of the stimulus check legislation passed in March and December of 2020, but there’s a way to settle the score on your 2020 tax return.
During the initial disbursal of checks, no person over age 16 who was claimed as a dependent on another person’s tax return could get a payment.
Because Congress directed the Treasury Department to use Americans’ 2019 or 2018 tax return to determine eligibility, it didn’t entirely account for financial need in 2020, when the coronavirus gripped the US.
Here’s what I mean: Consider a 23-year-old who was claimed as a dependent on their parents’ tax return in 2019. They graduated college in early 2020, but struggled to hold a job during the pandemic and could have used the relief check. Since the most recent return filed with the IRS listed the student as a 22-year-old dependent, their parents received no child stimulus payment and the student received no payment of their own.
I’m certain there are many versions of this scenario, but all you need to know is this: If a parent, guardian, or relative is not going to claim you as a dependent for 2020 and legally cannot then you can collect any missing stimulus money when you file your own tax return. You won’t get the money immediately, but it’ll be added to your refund. The IRS delivers most refunds within three weeks.
Do College Students Get Stimulus Check
While most eligible Americans have automatically received their Economic Impact Payment, there is a larger group of US citizens who may not get any stimulus check at all despite being below the maximum thresholds and they are college students. Around 8 million undergraduate students were left out from the two stimulus checks because the eligibility is based on their dependent status. Neither they nor their parents or taxpayer who claimed them received any amount of money.
Just like the first round of relief package in March 2020, only dependent youngsters under the age of 17 years are qualified for an additional Economic Impact Payment of up to $600. Again, adult dependents are largely left out to receive relief compensation. It includes millions of high school and college students dependents.
The Internal Revenue Service distributes stimulus checks to qualified businesses and individuals based on taxpayer status and age status.
As per IRS updates, Americans and resident aliens who can not be claimed as dependent on someone elses tax return will receive the second stimulus check of the American Rescue Plan. Therefore, only taxpayers and their dependents under the age of 17 years are qualified to receive money. The stimulus will pay to the taxpayer claiming dependents on their taxes.
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$1400 Stimulus Checks: Are College Students Eligible
Working and unemployed adults and parents are surely eligible for the direct payments, but can college students also get their hands on the cash? Heres the short answer: It depends.
In a mammoth effort to provide much-needed cash to millions of financially struggling Americans, the Internal Revenue Service has already sent out roughly hundred thirty million coronavirus relief checks under President Joe Bidens American Rescue Plan.
Working and unemployed adults and parents are surely eligible for the direct payments, but can college students also get their hands on the cash?
Heres the short answer: It depends.
If you are a dependent college studentmeaning someone, like your parents, claims you on their income tax return, the individual who claims you can get up to a one-time $1,400 stimulus check. Then it would be up to the parent to decide whether or not to pass on those funds to you.
However, if you are deemed financially independentmeaning that you are able to provide more than half of your own financial supportyou may indeed be eligible for that third stimulus check.
Like the rest of the adult population, keep in mind that there are income thresholds to meet in order to qualify for direct payment.
Individuals who earn as much as $75,000 in adjusted gross income , or couples making $150,000in addition to their children or adult dependentsqualify for the full $1,400 per individual.
Are College Students Eligible For Stimuli’s Checks Or If Dependent Are The Parents Eligible For The Check
The bottom line is there is no legal stimulus money for college students.
Parent do not get stimulus for dependents over 16. Any student who can be a dependent is not eligible for the stimulus on his own tax return.
Students who finished college in 2020 may or may not be eligible, depending on application of the dependent rules.
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Changing Your Tax Status For College Student Stimulus
A student may be eligible for the college student stimulus if they are willing to change their tax status. You should be careful however since you have a lot of proofing to do that you are at least half self-sufficient. To be able to change your status, you must be able to show evidence of the fact that you cater to at least half of your needs.
Students that live on campuses are close to this category while you that stay at home, have no work will find it difficult to convince the board that you are independent.
This may cost your parent a lot in the long run as they will not be able to file more tax-friendly results if they are single and have no other dependents.
You May Get $300 Stimulus Check A Month If You Have A Child
More than 20% of college students have children. If you have children, the stimulus package includes up to a $3,600 cash allowance for children under age 6, which is a $300 check every month. Theres also up to a $3,000 cash allowance for children ages 6 to 17, which equates to a $250 check every month. The previous child tax credit was an annual benefit of $2,000.
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How To Get A Student Stimulus Check In 2022
You must converse with your parent or guardian before you think of applying for stimulus. You may need the money but that doesnt mean your parent cannot give them to you when they claim you as a dependent. Going independent will rob your parent or guardian of the chance to pay lower taxes in the future if they do not have any kid to claim again as a dependent.
So, have a discussion and when you have come to a common ground to apply for the check, visit the IRS to file your tax information for the past year.
After filling and you are sure to have filled your account number and email, the IRS would do the rest by sending the money to your account or mailing you a check-in equivalent amount.