As reported by cnet,
The House of Representatives is now working to complete a version of, which includes a of , including . But the current timeline for passing the bill would leave the in the middle of , leaving many people with questions.
Will the IRS use myto determine my total payment? What happens if my income has changed in the last year? And what if my third check never arrives, or money is missing?
We’ve got answers for you based on the mostand how it will be governed. Check back often for more updates.
Why would my third stimulus check arrive during tax season?
House Speaker Nancy Pelosi said she expects Congress to have a final bill ready for Biden to sign into law by March 14, which is when. If Congress follows that timeline (which it may, due to to push through Republican opposition), a during tax season, which lasts .
This makes things a bit more complicated. For one, the IRS is already including. It also means that the IRS will likely use whichever tax return they have on file most recently (more below).
Will the IRS base my third stimulus check on my 2019 or 2020 taxes?
The most recent Democratic proposal (PDF) states that the IRS would determine your total third stimulus payment based on yourfrom either your — whichever the IRS has most recently on file at the time of payment.
There may be several implications to this. For example, if you earned more in 2020 than in 2019, but the IRS uses your 2019 return (and gives you more stimulus money than you might be eligible for), you won’t have to return that money (more below).
The IRS is now accepting 2020 tax returns. We recommend filing your taxes as soon as possible for several reasons. The earlier you file your taxes, the(you can ) and any on your return. You’ll also have a chance to , or fix any errors, which could .
What if I made more money in 2020, but my check is based on my 2019 taxes?
The most recent proposal (PDF) says the following:
Taxpayers receiving an advance payment that exceeds their maximum eligible credit based on 2021 tax return information will not be required to repay any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the amount of the advance payment, taxpayers can claim the difference on their 2021 tax returns.
Therefore, for example, if youbased on , but the IRS issued your check based on your 2019 taxes, you could claim the difference a year from now on your 2021 tax return — much like the current for from the first two rounds.
On the other hand, this also means that if you qualify for the full payment based on your 2019 taxes, but do not based on your 2020 taxes, and the IRS used your 2019 return, you will not have to pay the IRS back for that discrepancy.
What happens if my third stimulus check doesn’t arrive, or money is missing?
Once a final bill is approved, if you are eligible to receive a third stimulus check, but yours never arrives by, or , you’ll likely have to take another step to claim that money. This happened to millions of people during the first and second round of payments for , including IRS errors, out-of-date banking information or , or to get the IRS their information.
Much like the first and second checks, you’ll be able to claim any missing money from the third check owed to you or your dependents during tax season next year, 2022. That’s a long way away. The best thing to do right now to make sure that your third check does arrive on time is to, even if you don’t usually have to do so.
For more, check out what we know so far about a, and this time around.