Have you filed your taxes yet? Well, if you didn’t file your taxes in 2019 or your filing status or income has decreased since 2019, then you may want to file your 2020 tax return as soon as possible.
As the new stimulus bill has been passed by the House and Senate, qualified taxpayers can expect to receive that dreamy $1,400 stimulus check before the end of the tax season — that is, once the House makes a final approval after some amendments are made to the bill.
The third stimulus payment will be dependent on the taxpayer’s adjusted gross income (AGI) stated on the 2019 tax return, unless you file your 2020 tax return, in which the stimulus payment will be based on the 2020 AGI if the tax return is submitted to the IRS before stimulus checks are sent out.
Taxpayers should know that if their AGI was lower in 2019 than in 2020 and they don’t file their 2020 tax return that the IRS may use the 2019 tax return to issue the new $1,400 stimulus payment, depending on eligibility. Later, should it be determined that the taxpayer made more in 2020, the IRS will not require repayment of the stimulus payment in the future.
Find Out More About Retrieving Your Full Economic Impact Payment
Taxpayers will also notice new COVID-19 related inquiries while filing tax returns. For instance, if you did not receive the first two stimulus checks consisting of payments up to $1,200 and $600, then those payments can be distributed to you with your 2020 tax refund under the new Recovery Rebate Credit. However, you would have to file your 2020 tax return to receive those missing stimulus payment distributions.
Also, by filing the 2020 tax return, taxpayers will be able to update direct deposit information and make any corrections necessary, such as address changes, to avoid delay in stimulus payments. The deadline to file the 2020 tax return is April 15.
President Joe Biden’s $1.9 trillion coronavirus relief bill passed on Saturday, March 6. As appointed by the Senate, the House is expected to amend new legislation by Tuesday, according to the House Majority Leader Steny Hoyer, D-Md. The new Senate approved bill would raise the additional $300 unemployment benefits to $400 and extend the extra benefit to Aug. 29 instead of March 14, the original expiration date. The federal minimum wage did not raise to $15 an hour under the Senate approved bill, as well.
