No, you will not lose your grip. These are complicated things, from thebased on a number of factors on how the IRS . We’ve even created a tool to help you , but until the requirements are crystallized in another bill, there may still be some wiggle room.
Still, if you are, it is best to prepare mentally. Here are some scenarios that can lead to be smaller than the first. And if you didn’t get the first check immediately (by the way, here’s when it ), here’s what you might be able to do right now .
A basic knowledge of incentive money
In the, the IRS, for the most part, used your when calculating your total payment (people who were also eligible in many cases). But some people who were eligible for a check went through personal or financial changes after filing that could affect a future payment in one way or another.
If you’ve started a new job, got a raise, or earned more in total
Your, is a term normally used for the IRS annual tax return to describe your total income, including assets (such as stock sales, credits and deductions, an inheritance, for example) that are beyond your usual salary. The first stimulus check, and most likely the second, will cut you off if your AGI goes above a certain income threshold.
There is a huge correlation between them, and any change to your AGI can increase or decrease the size of your check.
For example, if you received the full $ 1,200with the first incentive check because your AGI was below the income limit, but then you got a promotion or a new job that pays more (congratulations) then your check may be smaller next time – as the – or maybe you’ve reached the threshold and . All things considered, this is a “good” problem to have.
You have less qualified dependents
Age is an important factor in how much stimulation money a household receives, but perhaps not in the way you think. In many cases, the elderly are entitled to a stimulus check. In the first round of direct payments, households were awarded an additional $ 500 for each “dependent child.” This is a legal minor who is 16 years of age or younger.
Interestingly, the IRS definition of a(23 years or younger, and financially dependent on the tax bearer) is not the same set of terms used for incentive controls.
If the rules stay the same (and there is,) any elderly dependents you claimed for the initial check may be outdated, meaning you could get $ 500 less if the rules stay the same.
You owe child support or have changed the way you claim your shared child
For the most part, any stimulus check you receive gives you full rights to use as you see fit. However, there is one exception in itwas child benefit. If you owe child support to your child’s other parent, your stimulus check may be garnished in whole or in part. If you received an additional $ 500 for the way you and the other parent filed a dependency claim (it’s complicated), and then changed how you filed your 2019 tax reserve (for example, if the other parent was given full custody) , you shouldn’t do that. get the extra $ 500. Here it is .
You owe money to private banks or creditors
Normally, your incentive money cannot be garnished to pay rent or federal taxes. However, there are a few exceptions, including the above child benefit situation. If these rules don’t change on the next incentive account, there are two groups:– who could legitimately seize all or some of your money from the first and probably second check.
The stimulus laws change, but not in your favor
Because the conditions of the– and that won’t happen until the incumbent president signs a bill – it’s not clear how they can or can’t change. There is also the way the IRS can interpret the law and act or withhold incentive money. For example, after the CARES Act was signed in March, the IRS sent first , then asked for it and stopped issuing new checks. A recent ruling by a federal judge has put them back in motion.
Like this law, and others related towould change, someone who was eligible for the first payment may be disqualified from a second check.
You’ve moved and the IRS can’t find you
If you have moved as a result of the COVID-19 pandemic and you have not moved(a good measure to take), the agency may not know where to send a paper check or . If you received your first stimulus delivery via direct deposit, the IRS will likely follow that route again. If you have changed your bank account, you can or must .
An IRS error or missing step – you want to file a claim
Itand could easily happen with the following. Written mistakes and complex rules can result in your household receiving less money in a future second stimulus check than you are actually entitled to – for you . Or maybe you don’t normally have to file a tax and are missing a rare extra step to take. You may have moved (see above).
Whatever the reason, if a problem prevents you from receiving some or all of your incentive money, you should be able to claim a rebate. The IRS is currently searchingfor a wide variety of groups, and will likely do this again if .
Someone has died since your last tax return
Our sincere condolences. If your household received a stimulus check with a spouse or dependent child who died between your last tax return and the receipt of the second stimulus check, the IRS will likely send a smaller amount if your tax filing status, deductions, credits, or AGI changes. If the person has recently passed away (by the time the next check arrives), the IRS will ask for the payment to be refunded.
For more information on incentives, here’s what President-elect Joe Biden might doby the time he becomes president, and .