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Home / Tips and Tricks / Millions of Incentive Vouchers to Arrive During Tax Season: How That Affects Your Payment

Millions of Incentive Vouchers to Arrive During Tax Season: How That Affects 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 officially passed in both houses of Congress Wednesday, and headed to President Joe Biden’s office to be signed into law on Friday. This means the third stimulus check from up to $ 1,400 per person will likely start sent out at the end of the month, 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 the checks are set to arrive.

With tax season and the third stimulus check merge in the same period, you will likely have many 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?

We help shed some light on these questions, as we understand them now that an invoice has been finalized. This story is regularly updated with new information.

The third stimulus check will likely start during tax season

The incentive account will be signed on Friday. That means the the third stimulus check could be sent at the end of March – 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 that the IRS will likely use the tax return that was 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 tax return?

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’ve already submitted it this year.

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 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 receive your third stimulus check faster

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

Angela Lang / CNET

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

The IRS uses your 2019 taxes to determine your third incentive payment, unless you file your 2020 return before the IRS processes the next 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 Refund 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 and if the IRS used your 2019 return, you would get the IRS does not have to pay. back for that discrepancy.

What should I do if the tax authorities have never processed my 2019 tax return?

Due to pandemic-related delays, the IRS continues to work through a backlog of paper tax returns from 2019. At the end of January, 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 to do if your incentive payment never shows up 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 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. 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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