Why Filing Your Taxes Early Can Help With Your Stimulus Check
A third stimulus check is being negotiated in Washington, and Americans that file their 2020 taxes early could see some extra cash.
According to Siouxland Proud, the IRS used 2019 returns to determine eligibility and the amount you'd receive on your stimulus check. The amount on the next stimulus check will be determined by your most recent return, so if circumstances changed and you haven't filed for 2020, you could miss out on some moola.
For example, let's look at my situation. When we filed in 2019 we didn't have our son yet. He was born in 2020. So when we received our stimulus checks, we didn't get the extra amount for having a child because the amount was based on our previous return information. If we were to file late, after Congress reaches a stimulus deal, then it will still be basing our status off of 2019. If we file 2020 taxes before this next stimulus information is determined then it will show that we now have a child and we will be credited for that. Make sense?
The report states that the latest plan committees are looking over shows that "people earning $75,000 or less would receive a full payment of $1,400, so a couple with an income below $150,000 would receive $2,800." Individuals earning more than $100,000 and couples making more than $200,000 would not receive additional money. This stimulus also includes college students as dependents. Dependents would be eligible for the full $1,400.
The goal is to have things finalized by mid-March. More detail can be found here. Don't miss out out the extra cash, and file your taxes as soon as possible.
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