My 2019 income was too high to qualify for this third (2021) stimulus check. My 2020 income is lower than the threshold, so I do indeed qualify. But I'm also reading that one should wait to file 2020 if they received unemployment, since the first $10,200 will not be taxable. Is it better to file today to get the third stimulus check (if it's not too late and the IRS has already submitted my 2019 numbers?) and then amend my return, OR wait? Thanks!
Would not recommend that you file your 2020 Federal 1040 tax return at this time. An extension is an option but there is also the possibility that the tax season will be extended beyond April 15. There is much to consider.
Once the IRS provides additional guidance, TurboTax will be updated to reflect these new tax laws relating to unemployment.
This TurboTax Help allows you to sign up for updates from TurboTax about this feature of the tax code.
If your 2019 income may be too high to qualify for the third stimulus payment. This TurboTax Help states:
If you have an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), you should be eligible for the full $1400 stimulus payment.
As your AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will go down.
The stimulus check rebate will completely phase out at $80,000 for single filers with no qualifying dependents and $160,000 for those married filing jointly with no dependents.
Thanks James. My 2020 income qualifies for the stimulus check as my AGI is below $75K.
My question: if I file now, will that trigger payment of the stimulus check (again, my 2019 income was too high and I would NOT have qualified if the IRS uses that figure)? Otherwise I fear that I'd have to wait until I file 2021 taxes to get that repayment (like they did this year with the second payment of $600 from 2020).
I'd rather amend in a month to take advantage of the new increased unemployment allowance vs potentially not getting the stimulus check now if that's indeed a possibility.
Thanks!
Forms availability for an amended 1040X tax return is not available before March 25 but that could be moved depending upon how the IRS decides to treat this unemployment income issue and whether the filing deadline does, in fact, get moved back.
At least at this point, we do not seem to be seeing people receiving the third stimulus based upon their 2020 Federal 1040 tax return. Perhaps that will change in a day or two.
This TurboTax Help states:
Do I need to do anything to get my stimulus check?
You don’t need to do anything to get your stimulus check. The IRS will determine eligibility based on your last tax return (either 2019 or 2020) and will likely send your payment to the bank account where your tax refund was deposited.
Things are so incredibly fluid. The best I can say is to follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center as further updates are issued by the IRS.
Best wishes.