Huge change in AGR, 3rd stimulus question

Forum|Forum|5 years ago
March 25, 2021
2 replies
15 views

in 2019 we took alot of money out from our 401k due to home varmint damage that was not covered under insurance. Under the 2019 AGR rules we still got stimulus checks for our kids and small ones for the wife and I.

Now when we filed ( using turbotax of course) our 2020 taxes...our AGR is MUCH lower and we "should" be seeing $7000.

Since they lowered the AGR for the 3rd stimulus we made ( based on the 2019 return) just over the cutoff ( like AGR 2019 170,000.)

BUT our actual 2020 AGR is much lower and like $110,000.

They STILL have not processed our 2020 return which they accepted on Feb12th.

WHEN they finally process our 2020 return...will the IRS send us the 3rd stimulus check which we should fully qualify for based on our 2020 return?

Hope this makes sense and I cannot find a straight answer to this anywhere.

Thank you

MinhT1

Level 15

Yes, you will receive the third stimulus for you, your spouse and your dependents later this year when the IRS has processed your 2020 tax return.

The IRS says in this document:

If a taxpayer's payment is less than the full amount and is based on their 2019 return, they may qualify for a supplemental payment after they file their 2020 return. The IRS will automatically reevaluate their eligibility. If the agency determines that they are entitled to a larger payment or the full payment, it will send them a supplemental payment covering the difference between what they originally received and the larger amount. If the re-evaluated amount is smaller, they won't need to pay back the difference. Aside from filing a 2020 tax return, no action is needed on their part.

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