Stimulus and Late filing 2019 Tax Return

[Faithw2112]

I need some guidance on this....We received a stimulus check in April (first round). They used our 2018 Tax return because at the time we hadn't filled our 2019 Taxes (we owed this year and had to wait a lengthy time for the W2 because the corporate office was in Louisiana and it took an obscured amount of time to receive it) Husband was laid off during COVID, finally went to work end of July as well as myself, We owe some money to the state of LA and IRS so we kept putting it off to file until we had the money to do so. Now here is our situation we just sent off our paper return this week, What is the eligibility going to be on the new stimulus? Are they still gonna go based off 2018? or will it be 2019 and if 2019 how is this going to affect us getting a stimulus when Imagine it is going to take about 2-3 months to process the return? 

Any guidance on this would be awesome. 

[NCperson]

the 2nd stimulus payment will go out by January 15th and be based on the 2019 tax return.

But not to worry.....

if you don't receive it, you will receive it through your 2020 tax return.  it'll appear on Line 30 of Form 1040.

in the end, nothing about 2018 and 2019 is going to matter; your eligibility as calculated on the 2020 tax return will be the only thing that matters. 

[Faithw2112]

Do you know why it would be calculated on the 2020 Tax return if we are not set to receive it until January wouldn't it be the 2021? Thanks 

[Faithw2112]

Do you know why it would be calculated on the 2020 Tax return if we are not set to receive it until January wouldn't it be the 2021? Thank

[NCperson]

Everyone prepares their 2020 tax return in early 2021.... is that the confusion? 

by law, as passed by Congress, they stipulated that BOTH stimulus payments are an advance refund against 2020 tax returns; hence it will all be reconciled on the return you file in the next few months.  

[DanielV01]

The 2020 return is filed in 2021.  However, the stimulus is actually an advance towards the credit that is then reconciled on the 2020 tax return.  If you received at least the amount of stimulus that is calculated on the 2020 return, you don't get more.  If your stimulus payment was not as much as what the 2020 tax return reveals, you receive the difference as added into your tax refund.  If you received more than you were "supposed to", you will not have to pay anything back.

[NCperson]

@DanielV01 

<< stimulus that is calculated on the 2021 return, you don't get more>>

I think you just confused the issue again ; it's 2020, right? 

[DanielV01]

@NCperson.  Thanks for the proofreading.  I have edited my answer to reflect.

[Faithw2112]

See but I thought they stipulated your amount is based off your 2019 tax return for the “2nd” check not in relation to the first. That’s what I am asking, I have an early script of our W-2’s they aren’t official but they are our estimates, so I placed them in turbo tax and it’s asking about the stimulus payment from March. How would the second one be tied to this tax season when we aren’t even set to receive them until 2021? Does this make sense..I understand the tax credit and all of that what I need clarification is from this stimulus check not the first 

[Critter-3]

The Stimulus Check is really based on your 2020 return we are filing in 2021.  So any amount you already got will be reconciled on your 2020 return line 30.  If you didn't get a Stimulus Check (and qualify) or you qualify for more it will be added to your 2020 return.  But the good news is if they paid you too much they won't take it back.

When you go through the federal review tab it will ask how much you got if any.  Or to enter your stimulus payment in TurboTax, type "stimulus" (without the quotes) in the Search box, then click the link that says "Jump to stimulus."

See this thread, it has good information and a screen shot

https://ttlc.intuit.com/community/after-you-file/discussion/i-filed-an-amended-return-for-2019-to-se...

See these 3 IRS questions on reporting it on your 2020 return

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

This was published in the Wall Street Journal today and begins to explain the timing and how these 2nd payments are going to occur: 

"To avoid sending money during tax-filing season, Congress established a Jan. 15 deadline for making the stimulus payments. Eligible individuals who don’t receive a check or direct deposit by that date will have to request a $600 refund when filing 2020 tax returns. "

That means the IRS is going to have to change how the EIP form that ties to Line 30 works prior to opening up the submission window in late January..... and it's how they are going to ensure that there isn't any unintentional 'double dipping' (I get a stimulus payment and I fail to state that on my 2020 tax return)

The IRS has no Congressional authority to send out payments after January 15, 2021.  The law further states this 2nd stimulus (like the 1st one) is an advance of the 2020 tax return - not the 2021 tax return!

Once we get past January 15, 2021, the only way the IRS has to get the 2nd stimulus to taxpayers is through the 2020 tax return, which I suspect means re-tooling the EIP form that ties to Line 30. 

and sure enough this is what the tax bill states (page 1969 if anyone really cares)

‘‘(ii) DEADLINE.—
23 ‘‘(I) IN GENERAL.—Except as
24 provided in subclause (II), no refund
25 or credit shall be made or allowed
under this subsection after January
15, 2021.

[Sternesky]

It could take 13 to 16 weeks to process a paper 2019 tax return. I filed my 2019 late on Dec 15 2020, and as of today(3/19/2021) 13 weeks have passed and it still has not been  processed. Regarding 2021 stimulus, best to file 2020 taxes early to get into stimulus que by efile. For 2019 AGI use 0 for unprocessed 2019 paper return. 

[jzazow]

If I did not file my 2019 tax return until June 2021 will I get a stimulus payment when I do file?

[Critter-3]

Missing first or second stimulus payments are recovered on the 2020 tax return  and no longer the 2019 return.  And the third stimulus is released when the 2020 return is processed ... so for all of these payments the 2020  return is the trigger.  

[jzazow]

Thank you!!