2025504
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Yes
Thank you! Are you 100% positive? Just a little worried I might get screwed over somehow.
@jnic103 wrote:
Thank you! Are you 100% positive? Just a little worried I might get screwed over somehow.
The Recovery Rebate Credit is only based on your 2020 federal tax return.
IRS website for the Recovery Rebate Credit - https://www.irs.gov/newsroom/recovery-rebate-credit
Economic Impact Payments were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.
Thank you for the reply but I am not talking about the Recovery Rebate Credit. I received my 1st and 2nd stimulus check in full already. I am talking about if and when a 3rd stimulus check is approved will they go by my 2019 tax return if my 2020 is not complete yet?
@jnic103 wrote:
Thank you for the reply but I am not talking about the Recovery Rebate Credit. I received my 1st and 2nd stimulus check in full already. I am talking about if and when a 3rd stimulus check is approved will they go by my 2019 tax return if my 2020 is not complete yet?
Since none of the legislation has been approved or signed into law by the President, we do not know how it is going to be handled by the IRS. The IRS will have to write the procedure on the IRS website after the legislation becomes tax law. Since the 2020 federal tax returns are now being filed, I do not see why the legislation would have the 2019 tax returns as the basis of the 3rd stimulus payment.
Ok I understand and that does make sense. However, if the third stimulus check comes out around the time they are predicting which is the third week or so of March you still have roughly a month to file your taxes. Not everyone may have filed their 2020 taxes by the 3rd week of March or may be in the same position as me. So, in that case I guess I'm just hoping that the IRS will use your 2019 taxes if your 2020 are not filed yet.
Yes they would use your 2019 if your 2020 is not filed. They also process the stimulus payments in batches, so let's say they start sending out payments April 5 and you filed April 14. That doesn't guarantee that they would use your 2019 taxes. There could still be a lag from the time they got to yours and your 2020 taxes could be processed before that. Hopefully they start sooner than that.
@Anonymous
Well technically my 2020 taxes are filed but they have been "rejected" because of a dependent issue I'm dealing with. So, my question is will the IRS still use my AGI from my 2020 taxes to calculate my stimulus check even though it was rejected? Or will they use my 2019 taxes if I don't have my 2020 taxes refiled by the time the IRS issues checks?
2019.
First and second wave stimulus checks have/are being issued. The second stimulus was also based on your 2019 return if the payment was issued.
The deadline for the second stimulus payment was January 15th. It is unclear, but has been said that if the full first two payments have not been received, the only way to be compensated is by filing a 2020 tax year return and claiming the Recovery Credit.
The third stimulus has yet to be approved, but should be a payment made independent of the first two.
If your 2020 tax year return is filed and in the IRS system, it will be based on that information.
If not, and sounds like yours isn't, it will be based on your 2019 return.
Yes, so this is why I am confused about what year the IRS will use for my third stimulus check if it's approved. I am not sure how a rejected tax return works? Meaning I know the IRS received my 2020 tax return and did see what my AGI is but it was rejected for a dependent issue. So, does the IRS keep rejected returns on file and "in the IRS system"? Or do they just send me back the rejected tax return and there is basically no history of it the IRS system? I guess what I'm asking is will the IRS use my AGI from my rejected 2020 return to calculate the third stimulus payment or will they use the prior year on file 2019?
Your return being rejected is the same as if you never tried to file it in the first place.
The IRS has never seen your 2020 Tax Return, it was never transmitted because of the Social Security number mismatch for the dependent on your return.
The IRS has no record of the return you attempted to file.
The bill for the third stimulus has not been signed, but all indications are that it will be based on the 2019 tax return if you have not yet filed for 2020.
If this is true, and you do not successfully e-file your 2020 return, it will be based on your 2019 return.
According to CBS News:
“If a taxpayer doesn't file their 2020 tax returns before the bill is signed into law, the agency will likely rely on their 2019 tax return to calculate their stimulus check payment — and that 2019 return might not reflect income losses during last year's economic crisis or a new child, for example. In that case, a taxpayer might not receive as much stimulus money as they are entitled to.”
Thank you! That is exactly what I wanted to know! And I actually made 74k in 2019 and 77k in 2020 so maybe I should hold off on fixing and refiling my 2020.
You should hold off and hope payments are made before your return gets processed. You'd get about $850 more. Do you normally have your refunds/stimulus payments direct deposited? If you don't and you've been receiving checks, the IRS doesn't have your direct deposit info. Direct deposited payments are the first to be processed. If your payment gets processed with the physical checks, it might not be done until 4/15.
@Anonymous
Yes, my first two checks were direct deposited into my bank account. And I also have a dependent so could be more like $1700 more.
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