I have received both my 1st and 2nd coronavirus stimulus payments. Both were based on my 2019 tax return. I had a higher income in 2020 and thus would almost certainly qualify for a reduced stimulus payment if the IRS based the payment on my 2020 return. I figure that Congress and the President will agree on something that would have the IRS issuing payments before April 15th (by which time I'd need to file my 2020 return). If so, I assume they'd still use my 2019 tax return to determine the payment if I haven't yet filed my 2020 return and I'd thus get a higher stimulus payment. Is anyone else in the same situation and if so, are you reading this the way I am and delaying filing your taxes? Does anyone know if this would work the way I'm thinking it would?
Nothing is published on any third round stimulus, but since the requirement at this time to receive any eligible round one or round two stimulus payments going forward is to file a 2020 tax return one could surmise that will now be the baseline return.
Here is the link with more information on the Recovery Rebate Credit.
No. Report your 1st and second stimulus payments as received in your Turbo Tax. Any future considerations you have mentioned may be addressed next year. Your only responsibility this year is to report receiving those payments.
Yes, I agree that the 2020 tax return won't be altered by a 3rd stimulus payment. It's ready to go. BUT...if I file now and they see my increased income, wouldn't they send me a lower third stimulus payment? If I waited, they may base the payment on my 2019 return and then I'd get a higher 3rd stimulus payment. After I get that payment, THEN I would file the 2020 return. Of course, this all assumes the IRS will base payments on the latest tax return they have on file and not require you to file your 2020 return to get the 3rd stimulus check....
Nothing is published on any third round stimulus, but since the requirement at this time to receive any eligible round one or round two stimulus payments going forward is to file a 2020 tax return one could surmise that will now be the baseline return.
Here is the link with more information on the Recovery Rebate Credit.
In case anyone is still reading this thread, it appears I may have been correct in my original post. If you had a higher income in 2020 than in 2019, you may want to wait to file your taxes until we know how the final third stimulus payment shakes out. This is one article from Kiplinger's that describes the situation, but there are several others as well:
I have the opposite problem. Here's my question:
I want my stimulus to be based on 2020 return, not 2019 (because the higher income that year would disqualify me). On 3/11/21 my 2020 returns were e-filed and "accepted". Will that be enough time for IRS to process before the stimulus direct deposits are issued? If not, is there a way to appeal it?
Your stimulus payments will be based on your 2020 tax return. If you receive the wrong amount, I imagine there will be a way to correct that, or it may be corrected automatically as the IRS will know based on your tax return the amount due you.
For now, however, you will have to wait and see what your options are as new guidance is released from the IRS.
@Madelynben wrote:
I had no income but ssi
SSI is Supplemental Security Income and is
not
from the Social Security Administration. It is designed to help aged, blind, and disabled people, who have little or no income; and. It provides cash to meet basic needs for food, clothing, and shelter. SSI is not reported on a tax return.
Social Security Retirement/Disability/Survivors benefits are reported on a form SSA-1099 and the benefits received are to be entered on a federal tax return. The benefits may be taxable depending on the amount of other income you have entered on your tax return.
However, if the Social Security benefits are the Only income to be reported on the tax return, then there is no reason or need to file a tax return.