قالب وردپرس درنا توس
Home / Tips and Tricks / FAQs About Third Stimulus Checks and Tax Season: Why Things Can Get Messy

FAQs About Third Stimulus Checks and Tax Season: Why Things Can Get Messy



016-calendar-money-cash-stimulus-bill-tax-2021

The IRS can base your next incentive check on your 2019 or 2020 tax return.

Sarah Tew / CNET

The House of Representatives has it $ 1.9 trillion stimulus package Friday night, one third stimulus check closer to reality. However, problems can arise if there could be a new stimulus payment in the middle of tax season – that is complicated this yearTax season ends on April 15 (unless you file an extension), meaning Americans will be busy filing taxes when it’s possible $ 1400 checks arrive.

By merging tax season and stimulus control No. 3, you probably have a lot of questions. Will you be eligible for the new payment based on your 2019 or 2020 taxesDo you have to pay tax on one of the incentive checks? What if you did not file tax or file a return in 2019 before the new invoice has expired? What if you circumstances have changed since you submitted the last application?

Most recent proposal for a third stimulus check helps to shed some light on these questions. But until a final bill is passed, we don’t know for sure, because something could change between now and when the law becomes law. We will continue to update this story.

Why the next stimulus check could come mid-tax season

House Speaker Nancy Pelosi said she expects Congress to have a final bill ready for Biden to sign the law on March 14. some unemployment benefits lapseIf Congress follows that timeline, a third stimulus check could come during tax season.

This complicates things a bit. First, the IRS is already inclusive make up incentive money from the first two checks with your tax refund this yearIt also means that the IRS will likely use the tax return they most recently filed (more below).


Now playing:
Look at this:

Stimulus Check # 3: What You Need to Know


2:59

Will the incentive check be based on my 2019 or 2020 taxes?

The most recent Democratic Proposal (PDF) states that the IRS would determine your total third stimulus payment based on your adjusted gross income, or AGI, of your Tax returns 2020 or 2019 – what the IRS has last on file at the time of payment.

This can have several implications. For example, if you made more in 2020 than in 2019, but the IRS uses your return for 2019 (and gives you more incentive money than you may qualify for), then you don’t have to return that money (more below).

The IRS is now accepting tax returns for 2020. For several reasons, we recommend filing your taxes as soon as possible. The sooner you submit a file, the sooner you will get your tax refund (you can estimate the total hereAnd each missing out on any incentive money you claimed upon your return. You also get a chance set up direct deposit with the IRS, or fix any errors that may be get your third stimulus check faster

dollars-money-bills-currency-6

With tax returns and third-party incentive checks potentially happening at the same time, the IRS may have its hands full.

Angela Lang / CNET

What happens if you made more money in 2020, but the IRS uses your 2019 taxes?

The most recent proposal says the following:

Taxpayers who receive an advance in excess of their maximum eligible credit based on 2021 tax return information will not be required to return any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the advance amount, taxpayers can claim the difference on their 2021 tax return.

Therefore, if you are eligible for the full $ 1,400 based on your taxes for 2020but the IRS issued your check based on your 2019 taxes, you could claim the difference a year from now on your 2021 tax return – just like the current one Credit for chargeback discount in front of missing stimulus check money from the first two rounds.

On the other hand, it also means that if you qualify for the full incentive payment based on your 2019 taxes, but don’t qualify based on your 2020 taxes, and if the IRS has used your 2019 return, you the IRS back for that difference.

What to do if your incentive payment never arrives or money is missing

Once a final bill is approved, if you qualify for a third stimulus check but yours never shows up direct deposit paper check or EIP card, you probably have to take one more step to claim that money. This happened to millions of people during the first and second round of payments different reasons, including IRS errors, outdated bank information, or addresses and nonfilers who don’t go the extra mile to get the IRS their information.

As with the first and second check, you can claim any missing money from the third check to you or your family members during tax season The next year 2022. That is far away. The best thing to do now to make sure your third check arrives on time is to file your tax return as soon as possibleeven if you don’t usually need to submit one.

To learn more, read what we know about a third stimulus check and which we believe qualify This time.


Source link