As reported by cnet,
After months with little movement in the negotiations for a, three new proposals on Tuesday facing the US economy and people, but would of .
However, if Congress does authorize athis year or in early 2021 — and this is still an open question — the may change in ways that could yield larger or smaller checks for tens of millions of people. Some Until the qualifications are finalized, there still may be some uncertainty over the
Regardless, if you’re, you’ll want a realistic picture of . With that in mind, we laid out some scenarios that could result in a smaller second payment. And if you had to wait for the first payment, follow these steps We recently updated this story.
Stimulus money: One key thing to know
In the, the IRS for the most part used your when calculating your total payment (people who were in many cases eligible as well). But some people who qualified for a check have experienced personal or financial changes after filing that could affect a future payment one way or another.
Did you start a new job, get a raise or earn a higher income overall?
Your, is a term normally used for the IRS’ yearly tax return to describe your total income, including assets (like stock sales, credits and deductions or an inheritance, for example) that fall outside your usual paycheck. The first stimulus check, and most likely the second, will cut you off if your AGI goes above a certain income limit.
There’s a huge correlation between, and any change in your AGI could increase or reduce the size of your check.
For instance, if you received the full $1,200with the first stimulus check because your AGI was under the income limit, but then you got a promotion or a new job that pays more (congratulations), then your check may be smaller next time — since the — or you may have maxed out the threshold and . All told, this is a “good” problem to have.
Do you have fewer child dependents now than you did earlier this year?
Age is an important factor in how much stimulus money a household gets, but maybe not like you think. Older adults are in many cases entitled to a stimulus check. In the first round of direct payments, households were given an extra $500 for each “child dependent.” This is a legal minor who is 16 years old or younger.
Interestingly, the IRS’ definition of a(23 or under, and financially reliant on the tax filer) isn’t the same set of terms used for stimulus checks.
If the rules stay the same (and there’s), any older dependents you claimed for the first check may have aged out of eligibility, which means you could get $500 less if rules stay the same.
Are you behind on child support or did you change how you claimed your dependent?
For the most part, any stimulus check you receive you have full rights to use as you like. However, one exception laid out in thewas child support. If you owe child support to your kid’s other parent, you may have some or all of your stimulus check garnished. If you received an extra $500 for the way you and the other parent filed a dependency claim (it’s complicated), and then changed how you filed in your 2019 tax reserve (for example, if the other parent gained full custody), you may not get the extra $500. Here’s .
Do you have any debts with creditors or private banks?
Normally, your stimulus money can’t be garnished to pay rent or federal tax. There are a few exceptions, however, including the child support situation above. If these rules don’t change with the next stimulus bill, then there are two groups —— who could legitimately seize all or part of your money from the first, and likely second, check.
Some stimulus laws could shift, which may disqualify you
Since the terms of the— and won’t be until the sitting president signs a bill into law — it isn’t clear how they may or may not change. There’s also the way that the IRS may interpret the law and act or withhold stimulus money. For example, after the CARES Act was signed in March, the IRS first sent , then asked for it back and stopped issuing new checks. A recent ruling from a federal judge has started them up again.
If this law, and others regarding, were to change, it could make someone who was eligible to receive the first payment disqualified for a second check.
Did you give the IRS your new address if you moved?
If you moved as a result of the COVID-19 pandemic and haven’t(a good measure to take), the agency may not know where to send a paper check or . If you received your first stimulus delivery through direct deposit, the IRS will likely go that route again. If you changed bank accounts, you may or need to .
If there’s an IRS error or missing step, you’ll likely need to file a claim
Itand could easily happen with the next. Clerical errors and complex rules might result in your household getting less money in a future second stimulus check than you might really be entitled to — for you . Or maybe you don’t normally need to file taxes and wind up missing a rare extra step you need to take. Perhaps you moved (see above).
Whatever the reason, if some issue prevents you from receiving all or part of your stimulus money, you should be able to claim a rebate payment. The IRS is currently sorting throughfor a wide range of groups, and will likely do so again if .
Has anyone in your family died since your previous tax filing?
Our condolences. If your household received a stimulus check that included a spouse or child dependent who died between your last tax filing and the receipt of the second stimulus check, the IRS is likely to send a smaller sum if your tax filing status, deductions, credits or AGI changed. If the person is recently deceased (by the time the next check arrives), the IRS asks for the payment to be returned.
For more on stimulus, here’s what President-elect Joe Biden could doby the time he becomes president, and .