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Home / Tips and Tricks / Incentive Checks During Tax Season 2020: What It Means for Your Payment

Incentive Checks During Tax Season 2020: What It Means for Your Payment



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

Sarah Tew / CNET

The $ 1.9 trillion stimulus package Thursday officially became law. The legislation triggers payments for the third stimulus controls from up to $ 1,400 per person, of which the first goes out this weekend. The arrival of the checks is exactly halfway through tax season, that is complicated this yearUnless you file an extension, tax season ends on April 15This means that Americans still will be busy filing taxes when the checks come in.

Given its confluence third stimulus check and the previous year’s taxes merge in the same lane, you no doubt have questions. Will you be eligible for the new payment based on your 2019 or 2020 taxesWhat 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?

Now that the bill has been made legal, read on for some of the answers as we now understand them. Note that you can track your payment and set up instant deposit for your checkalso. This story is regularly updated with new information.

Yes, the third round of incentive checks starts during the tax season

The incentive account is now signed into law. And the third stimulus controls are now to some like this weekend – in the middle of the tax season.

There are a few reasons why that 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 the IRS will likely use the tax return last filed (more below).


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Stimulus Check 3: How Much Money You Get


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Will the IRS base my third incentive check on my 2019 or 2020 income?

The final bill (PDF) states that the IRS would determine your total third stimulus payment based on your adjusted gross income, or AGI from your most recent tax return – either your return in 2019 or your 2020, if you submitted the latter in time this year so that the IRS can determine your 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). This assumes you have not filed your 2020 taxes.

The IRS is currently accepting tax returns for 2020. We recommend that you file 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 stimulus money you claimed upon your return. You also get a chance set up direct deposit with the IRS, or fix any bugs that may be receive your third stimulus check faster

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

Angela Lang / CNET

What if the IRS uses my 2019 tax return, but I made more money in 2020?

The IRS uses your 2019 taxes to determine your third incentive payment, unless you file your 2020 return before the IRS processes the new check.

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 of incentive payments.

On the other hand, this 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 – assuming the IRS used your 2019 returns – you don’t have to pay the IRS back for that difference.

What to know if the IRS never processed your 2019 tax return

Due to pandemic-related delays, the IRS is still working through a backlog of paper tax returns from 2019. At the end of January 2021, there were 6.7 million individual income tax returns for 2019 pending processing, the agency said. These processing delays can be the result of a number of things, including an error, missing information, or suspected identity theft or fraud. If the IRS contacts you for more information, you should get a letter. Solving the problem then depends on how quickly and accurately you get back to the desk.

However, the new bill states that a third stimulus check is based on your 2019 or 2020 tax return – not your 2018 tax return.

The bill says:

Based on the information available to the secretary, based on that information will determine the advance amount of the repayment in respect of that person.

If your 2019 tax return is still being processed, the best thing to do now is to do so submit your declaration electronically for 2020 as soon as possible, according to Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. But if the delay in processing your 2019 return is due to an issue that also occurs with your 2020 return, your 2020 return could be delayed, which can delay your payment, Holtzblatt said.

What if my incentive payment never arrives or if money is missing?

If you qualify for a third stimulus check, but yours never shows up direct deposit paper check or EIP card, you probably need 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 all the missing money from the third check to you or your family members during tax season The next year 2022. Yes, 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.

For more information, see a timeline for when the third checks could go out, and how much money you could get

The editorial content on this page is based solely on objective, independent reviews by our writers and is not influenced by advertising or partnerships. It is not supplied or commissioned by a third party. However, we may receive compensation when you click on links to products or services offered by our partners.


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