The IRS just opened their doors to process tax returns on February 12th. This delay has me wondering if they will be able to finish processing the second round of stimulus checks to those eligible, process 2020 tax returns, and send out the 3rd round of stimulus checks.
All in the year, 2021? Yeah, we'll see about that...
FAQs:
Are stimulus checks taxable?
No, they are not taxable income and do not need to be reported on your tax return
How much were the stimulus checks?
1st round - $1,200 for every eligible American, $500 for each dependent
2nd round - $600 for every eligible American, $600 for each dependent
3rd round - $1,400 for every eligible American, $1,400 for each dependent
How will I know I got the money?
The IRS is using your most previously filed tax return in order to process payment. If you utilized direct deposit or direct pay from your bank account on your most recent tax return, the IRS will directly deposit the amount in your account, if you are eligible. If you did not provide banking details on your tax return, the IRS will send a paper check to the address used on your most recent tax return.
What if I haven’t received any of the stimulus checks?
There is a line on your 2020 individual tax returns titled, "Recovery Rebate Credit”. If you were eligible for the stimulus checks and did not receive them, you can claim them on this line of your return which will either increase your refund or lower your tax owed. If you’re a client of mine, be sure to communicate this to me and I’ll get it taken care of.
Should I wait to file my 2020 tax return?
This depends. If you earned less in 2019 than in 2020, you might wait to file so that your eligibility is determined on your 2019 income.
If you made less in 2020, it would benefit you to file as soon as you can.
Wait, I forget, who's eligible?
To qualify for the full payment, you must make less than $75,000 per year ($150,000 for a married couple filing jointly) or less than $112,500 if you're the head of household (typically single parents). Even if you have no income, you're eligible to receive a stimulus check.
If you’re a client of mine, reach out and let me know if you have any questions at all.
Comments