topic Re: stimulus payment in Other financial discussions

stimulus payment

Km70 — Sat, 10 Apr 2021 15:53:34 GMT

I filed our 2020 tax return before the new March unemployment deduction of $10,200 was approved. Our gross income was just over the $150,000 cutoff for full stimulus payment. Now, with that $10,200 deduction from adjusted gross income it would have been $147,000 and we would have received the full payment. Is there a way for me to recover this loss?

Re: stimulus payment

LenaH — Sat, 10 Apr 2021 17:12:30 GMT

It depends. Under the new law, taxpayers who earned less than $150,000 in modified adjusted gross income can exclude some unemployment compensation from their income. People who are married filing jointly can exclude up to $20,400 – up to $10,200 for each spouse who received unemployment compensation. If you have an modified adjusted gross income over $150,000, you would not qualify for the exclusion.

Please see What Is the Difference Between AGI and MAGI on Your Taxes? to determine what your modified adjusted gross income (MAGI) is for 2020 and if you qualify for the exclusion.

If you are eligible for the exclusion, the IRS will likely send you an additional stimulus payment beyond what you already received if you qualify for more based on your updated 2020 tax information. The IRS is sending out stimulus checks throughout 2021.

Lastly, you may be eligible to claim a 2021 Recovery Rebate Credit on your 2021 tax return filed next year. If you don't receive a third payment or don't receive the maximum amount this year, you may be eligible to claim the 2021 Recovery Rebate Credit when you file your 2021 tax return.

Questions and Answers about the Third Economic Impact Payment — Topic H: Reconciling on Your 2021 Tax Return

IRS will recalculate taxes on 2020 unemployment benefits and start issuing refunds in May

Re: stimulus payment

Km70 — Tue, 13 Apr 2021 13:23:32 GMT

Thank you for the reply and answers to my questions. It was exactly like I was hoping for and it should all work out.

Re: stimulus payment

rcea — Sun, 02 May 2021 07:19:24 GMT

Thank you I was wondering about this as well. Crossing my fingers