If Congress succeeds in approvingeither in 2020 or 2021, which is still very possible, it could end in ways that would result in greater or even smaller pay for tens of millions of people. In some cases you are all the way. Until eligibility is established, there may still be some uncertainty about the .
Either way, if you, you want to manage your expectations . With that in mind, we’ve put together some scenarios that can make your second check smaller than the first. Besides, if you didn’t receive your first payment immediately, here’s what you can do now . This story was recently updated with new information.
Incentive money: an important thing to know
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.
Have you started a new job, have you received a salary increase or have you earned a higher total income?
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 or 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 limit.
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.
Do you have fewer dependent children now than earlier this year?
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), older dependents you claimed for the first check may be outdated, meaning you could get $ 500 less if the rules stay the same.
Are you behind on alimony or have you changed the way you charge your charges?
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 .
Do you have debts with creditors or private banks?
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.
Some incentive laws can change, potentially disqualifying you
Because the conditions of the– and won’t be 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 to, would change, someone who was eligible for the first payment may be disqualified from a second check.
Did you give the IRS your new address if you moved?
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 .
If there is an IRS error or a step is missing, you probably need 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 .
Has anyone in your family 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 .