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Your third stimulus check may arrive during tax season. What to know



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

Sarah Tew / CNET

Congress is working to finalize President Joe Biden’s $ 1.9 trillion stimulus package in mid-March, with the goal of one third stimulus check from up to $ 1,400 per person to Eligible Persons and Families as quickly as possible. The only problem: if this timeline is correct, it is new incentive payment falls right in the middle of tax seasonSo just like the IRS is processing Federal Tax Returns 2020, it will be sending the next round of stimulus controls

Then you may wonder: when do I have to file my tax return? Will the IRS be my 2019 or Tax return 2020 to determine my third payment? What happens if I do not submit an application on time? What if my third check never arrives, or if the amount is incorrect?

We have answers for you based on what we know most recent proposal for a third stimulus checkHowever, we won’t know for sure until we can read the final language in a new bill. We will continue to update this story.

Why might your third stimulus check arrive during 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 (which it can, because of a legislative instrument that Congressional Democrats use to push through Republican opposition), a third stimulus check could come during tax season, which lasts until April 15

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


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Would your third incentive check be based on your 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 stimulus money you claimed upon your return. You also have the chance to set up direct deposit with the IRS, or fix any errors that may be get you your third stimulus check faster

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With tax returns and third party incentive checks possibly occurring simultaneously, the IRS could have its hands full.

Angela Lang / CNET

What happens if you made more money in 2020, but the third check is based on your 2019 taxes?

The most recent proposal (PDF) says the following:

Taxpayers who receive a prepayment that exceeds their maximum eligible credit based on information on the 2021 tax return will not be required to return any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit is greater than the amount of the advance, 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 2020, but 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.

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 do not have to pay IRS back for that discrepancy.

What happens if your third stimulus check does not arrive or if 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, or nonfilers who don’t go the extra mile to get the IRS their information.

As with the first and second check, during tax season you can claim all the missing money from the third check that is owed to you or your family members The next year, 2022. That is far away. The best thing to do right 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.


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