To get those payments out quickly, the IRS will use 2019 or 2020 tax returns to calculate payments.
For most people, it wont make a difference which years tax returns the IRS uses.
Theyll qualify for the full stimulus check either way.
This post refers to the 2019 and 2020 tax season. For the most up-to-date info, check out ourrecent tax articles.
Could Filing Taxes Now Cost You Your Third Stimulus Check?
The bill phases out payments for people earning above these amounts.
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Taxpayers also get $1,400 for each dependent, but those payments phase out at the same rate.
So a married couple earning $160,000 with one dependent child wont receive any stimulus money.
The same goes for if your incomes are nowhere near these thresholds.
But heres where it may make sense: Suppose you made $65,000 in 2019.
The third round is expected to work the same way.
Bottom line: If you get a stimulus check, you dont have to worry about paying it back.
Who Should File Their Taxes Right Away?
For a lot of people, filing a 2020 tax return will result in more stimulus money.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
