Stimulus checks and your 2020 taxes: What you need to know to file in a weekFebruary 6, 2021
is now a week away. On Feb. 12, the IRS will begin . And this year, your stimulus check money may be tied to . Why? Because Congress and the IRS linked the first two direct payments to your taxes, and your filing status may be important for a — even if . For example, knowing how the can tell you if you should expect a whole or partial check — or .
The IRS also is using this year’s return (for taxes on your 2020) to make good on . Anyone who can claim the money as a , which the agency has built directly into the tax return process. And when you file, it’s with the IRS, if you haven’t yet. (We also recommend .)
With layers of complications to navigate andjust around the corner, you have time to collect the paperwork you’ll need to claim a payment. We explain how tax returns and your go together, how your figure in, whether the payment and everything else you need to know. By the way, here’s the status of a for up to per . And here’s why the
I didn’t get my second stimulus check. What can I do? What’s a Recovery Rebate Credit?
You can also claim money the IRS owes you from the first round of stimulus checks, authorized last spring — millions are owed a.
To help work out whether you’re missing a payment, and for how much, the IRS provides a Recovery Rebate Credit Worksheet. You’ll need the IRS’ calculated amount from , called Notice 1444 for the first payment and Notice 1444-B for the second payment.
When do I claim a stimulus credit on my taxes?
According to the IRS, you’ll be able to claim a missing payment on your taxes starting next week, with any payments going out after after you file. You can start preparing your taxes now — through the IRS’ Free File tax preparation service, if you qualify to use it — or through a . The first day the IRS will begin accepting and processing individual tax returns is Feb. 12. The this year, but you can if you can’t make the deadline.
What if I wait till the April 15 deadline to file my taxes?
April 15 is the due date for all 2020 tax returns, but filing your taxes sooner will not only potentiallyfor any you might collect, bit also it will position you to get any weeks or even months faster. We that looks at the timing.
Will filing my taxes this year speed up or slow down my third stimulus check?
That depends. Since a third stimulus payment isand we can only guess , one potential way to receive it first is to , if you haven’t already.
What if I’m a ‘nonfiler’ and not required to file my taxes?
According to the IRS, Free File service.Form 1040 or Form 1040-SR to claim the . The IRS says anyone with an income of $72,000 or less can file a federal tax return electronically for free through the IRS
Will I have to pay taxes on the stimulus check money I received?
No, a the IRS has said.doesn’t count as income so you won’t owe tax on it,
I didn’t file my taxes in 2019. Do I still qualify for a payment?
If you weren’t required to file a 2019 tax return because you wereor you receive federal benefits such as Social Security (including through ), you may still qualify for a payment. Up to 9 million people who fell into this nonfilers category were owed a first stimulus payment as of last fall.
Though many people in this category should have received their second payment automatically, if the IRS doesn’t send your money by the start of tax-filing season, you’ll need to the Tax Foundation said.with the ,
How is my stimulus check total related to my tax returns?
The IRS uses the, from your 2019 federal tax return to and your household will receive. (We explain here .) Your AGI may be a different figure from your annual salary or take home pay, since it’s based on a variety of factors.
How are taxes, stimulus checks and dependents connected?
For the second check, you could receivefor under age 17 whom you claim on your taxes. The definition was narrower than for dependents who’d be eligible for certain credits under tax law, including , dependents of any age with disabilities and .
Theunder could seek to widen that definition for its proposed . (Here’s what we .)
Am I eligible for stimulus money if I lost my job or got a new one since filing my taxes last year?
If your financial situation changed after you filed your 2019 tax return — for example, you received less income — you can claim that additional amount on your 2020 tax return when you file this year.
Will the stimulus payment I received affect how much I’ll owe on this year’s taxes?
If you got a payment last year, it won’t reduce your tax refund or increase what you owe when you file your 2020 tax return this year. The payment also doesn’t count as income to determine if you’re eligible for federal government assistance or benefit programs.
Could my 2019 tax returns help get my missing stimulus money quicker?
Depending on your personal tax situation, thewould either reduce the total amount you owe to the IRS or give you a larger .
If the IRS has your direct deposit information from a previous federal tax return, the agency will attempt to. If you receive your tax refund by check in the mail, however, or if the IRS info or your bank information is out of date, the agency will send your refund in the mail. The IRS didn’t accept , but you should consider registering a .
Do I have to send my stimulus check back if I qualify for less with next year’s taxes?
You won’t be required to pay back a stimulus payment if, based on your 2020 tax returns, you no longer qualify for the amount you received. Here’s when the .
Could the IRS garnish my stimulus payment to cover other expenses I owe, like federal taxes?
For the second check, the IRS won’t reduce your stimulus payment to cover anyyou owe, and debt collectors either.
However, the protections from the Consolidated Appropriations Act that prevented the IRS from garnishing your stimulus check for unpaid taxes do not apply to people who areon their .
“If you are an eligible individual who has not yet received your full EIP and you have certain outstanding debts, some or all of your unpaid stimulus payment will be withheld to offset those debts,” the Taxpayer Advocate Service said in a blog post. The IRS is looking into this issue.
For more, here’s.