![]() In that case, she would most likely receive less than $1,400 because the IRS would use her 2019 earnings of $90,000 to determine her payment. If she doesn't file her 2020 tax returns by the time Congress passes the next relief bill, the IRS would likely base her third stimulus check on her 2019 earnings. Take a single worker who earned $90,000 in 2019 but who lost her job during last year's massive layoffs and ended up earning $45,000 in 2020. Taxpayers should consider two issues: Their income in 2019 versus 2020 and whether they had a child last year, noted Mark Jaeger, director of tax development at TaxAct. You know, not to very high-income people who don't need it." Why filing taxes ASAP could get you more "He wants to make sure that they're appropriately targeted so they go to people in need. "President Biden has discussed the checks with Republicans and members of Congress," she said. Biden for his signature, Treasury Secretary Janet Yellen told CNBC on February 18. Lawmakers could move forward with the bill in the next couple of weeks, sending it to Mr. ![]() "That overwhelming consensus is, in order to grow the economy a year, two, three and four down the line, we can't spend too much," Mr. Biden emphasized that he's committed to passing a large stimulus bill, noting that economists believe a significant investment can help the economy recovery in the short- and long-term. In a CNN Townhall in Wisconsin on February 16, Mr. The payments would ratchet down for incomes above those levels, phasing out entirely for single people earning $100,000 or more and couples earning $200,000 or more. That would ensure the full $1,400 relief payments would go to individuals making $75,000 or less, while couples earning $150,000 would be entitled to $2,800 relief payments. On February 8, however, House Democrats pushed back on those lower income limits, proposing to keep the income thresholds at the same level as for the previous checks. Under one plan, Democrats could lower the annual income thresholds to qualify for a payment to $50,000 or less for single people and $100,000 or less for married couples, according to the Washington Post. Ongoing negotiationsĬurrently, lawmakers are negotiating details of the next stimulus package, including what income thresholds should apply for the next round of checks, called Economic Impact Payments. For instance, people who had a baby in 2020 would be entitled to an additional $1,100 in stimulus money ($500 from the first round, and $600 from the second round), which they can claim on their 2020 tax returns.Īny additional money owed from the past two stimulus checks will be sent through refund checks this year, the IRS said. To be sure, there's another reason to file early: To get your tax refund as soon as possible, especially if you are owed some money from either one or both of the past stimulus checks. ![]() "We are hearing a lot of people say, 'I had a baby in 2020, how will the IRS know this? When they issued the previous stimulus payment they didn't know that.'" "I would suggest that people file as soon as possible, especially with 75% of taxpayers last year receiving a tax refund close to $3,000," said Lisa Greene-Lewis, a tax expert at TurboTax. So far, the IRS has only extended the tax deadline for residents of Texas, who have until June 15 to file their returns due to the deadly storms that hit that state. The American Institute of CPAs earlier this month urged the IRS to announce by March 1 if it intends to extend the tax filing deadline for all taxpayers. ![]() The IRS officially started accepting tax returns on February 12, but said that the filing window will close on its customary date of April 15. The reason boils down to the confluence of tax-filing season and the expectation that Congress will pass the next relief bill by mid-March. Aside from Congress' time frame for passing the legislation, there's another factor that could influence stimulus payments: your 2020 tax returns. With lawmakers negotiating another round of coronavirus relief aid, many Americans are eager to learn if and when they'll receive a third stimulus check. Why experts advise filing 2020 tax returns ASAP as Congress continues negotiating next round of stimulus checks 05:53
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