If a taxpayer does not file their tax returns for 2020 Before Congress passes the stimulus bill, the agency will rely on your tax return of 2019 to calculate the payment
Photo: Mariela Lombard / El Diario NY
With legislators negotiating the stimulus package, many Americans are anxious to to know if they will receive a third stimulus check and when. In addition to Congress’s deadline to pass the law, there is another factor that could influence stimulus payments: your tax returns of 2020.
The reason comes down to the confluence of the tax filing season and the expectation that Congress will pass the next bill in mid-March. The IRS began accepting tax returns , and the submission window closes on its usual date of 15 April.
That means the agency may begin distributing stimulus checks in the middle of the tax season, which could affect the amount they receive Americans, especially households that lost income in the past year or had a child in 2020.
The IRS depends on each tax return to determine the payment of the stimulus check. If a taxpayer does not file their 2020 before Congress pass the stimulus bill, the agency will be based on your tax return of 2019 to calculate the payment from her stimulus check.
For example, to a worker who earned $ 90, 000 in 1200, but who lost his job during last year’s mass layoffs and ended up earning $ 45, 000 in 2020. If you do not file your 2020 tax returns, the IRS would base your third check stimulus on your earnings of 2019.
In that case, you will receive less than $ 1, 150 because the IRS would use your earnings from 2020 of $ 90, 000 to determine your payment . But if you file your 2020 as soon as possible, the IRS will record your most recent annual income of $ 45, 000, qualifying her for the full payment of $ 1, 400.
That statement of 2019 might not reflect revenue losses during last year’s economic crisis. or a new child, for example. Currently, lawmakers are negotiating the details of the next stimulus package, including the revenue thresholds to be applied.
Under a plan, Democrats could lower the annual income thresholds to qualify for a payment to $ 75, 000 or less for single people and $ 100, 000 or less for married couples, according to the Washington Post.
However, House Democrats rejected those limits of income and proposed to keep income thresholds at the same level. That would ensure that checks for $ 1, 400 would go through to people earning $ 75 , 02 or less, while couples earning $ 150, 000 would be entitled to $ 2, 800.
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