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How Your Federal Taxes Could Change Your Next Stimulus Check


Taxes and economic reviews are closely related. We’ll show you how.

Angela Lang / CNET

The negotiators have a few weeks to reach an agreement on a deal for another economic rescue package Before the Election on November 3rd, with lots of details in a new bill still to be worked out. A key piece in a second payment already played an important role in the first: the Size of a stimulus check and your taxes are linked.

Determine your federal tax return how much money are you entitled to and who even qualifies for a direct payment from dependent persons to adult, older adults and retirees. And for those who are not required to file federal tax returns, Congress has made arrangements to ensure that those individuals receive checks.

If you have that first stimulus test from up to $ 1,200Does that count as income when you file your taxes next year? Based on current negotiationsCould that change with a second payment? How do relatives get involved? And what if your income is different between your first check and a second check?

We can help answer your questions about how tax returns and business cycle reviews fit together. And here are those The most important thing to know about stimulus checks a total of.

Look at that:

Next stimulus checks: what to expect


How do my tax returns determine the size of my stimulus check?

The IRS uses the Adjusted Gross Income or AGI, from your 2019 tax return (or your 2018 tax return if not filed in 2019) to calculate your payment scale. Your AGI may differ from your annual salary or take-away pay due to various factors.

The income limits that decide exactly How much of the $ 1,200 per adult is your household getting? – and if you are qualified to receive a check first and foremost – come straight from AGI for your past taxes, not necessarily your income at the time of the checks.

What is the relationship between relatives and taxes?

You can receive a payment of up to $ 500 for the economic impact payment approved under the CARES Act this spring each dependent If you are under 17, claim your taxes. The narrow definition excluded others who might also meet the needs of a dependent for both under tax law Children from 17 years and adult relatives.

The competing proposals On the table of the White House and Democratic negotiators, dependents will continue to be linked to additional payments, with a proposal calling for $ 1,000 for each dependent child and two different proposals Expand the definition of dependent to include any child or adult that you claim upon your return for $ 500 each.

Who qualifies as dependent and how much Congress allows for them remains open until Washington approves the next stimulus check.

Do I pay taxes on my economy?

No, a Stimulus payment does not count as income and you will not owe any tax on it, the IRS said.

What if my AGI is different between my 2018 and 2019 tax returns?

If you filed your 2019 tax return before April 15, 2020, the IRS used your reported AGI to determine the amount of your first payment. If you didn’t file in 2019 but did file in 2018, that’s the year the IRS used it. A second check is likely to follow the same protocol if and when this happens.

What if I’ve lost my job or got a new one since filing taxes? Do I qualify for a stimulus check?

If your financial situation changed after filing your 2018 or 2019 tax return – for example, you received less income – you can claim that additional amount on your 2020 tax return when filing 2021. You will likely need to take an extra step to claim your credit – the IRS will post more details closer to the 2020 tax season.


The IRS will calculate the amount of your business stimulus payment based on your current tax returns.

Angela Lang / CNET

Can my 2019 tax return help me get a second check faster?

If you filed taxes in 2018 or 2019 and provided direct deposit information, the IRS will try Deposit your check in the bank account you specified on your tax return. If you typically get your refund by check in the mail, the IRS has provided a tool that allows you to use your banking information to receive an electronic deposit.

The deadline to use this tool was mid-May, but the IRS would likely reopen it in case a second stimulus check is done.

How would the stimulus payment this year affect how much I owe on next year’s taxes?

Receiving a payment this year will not reduce your future tax refund or increase your debt when you file your 2020 tax return next year. The payment also does not count as income to determine if you are eligible for government assistance or benefit programs.

Do I have to return the money if I qualify for less with next year’s taxes?

You do not have to repay a business stimulus payment if you no longer qualify for the amount received based on your 2020 tax return.

Will the IRS use my stimulus money to cover taxes I owe?

If you owe federal taxes or have any other federal debt, the IRS won’t cut your stimulus payment to cover them, with one exception we know of. If you owe overdue child support payments, the IRS will offset your payment to cover those costs.


If you didn’t have to file a tax return, you can still qualify for a stimulus review.

Angela Lang / CNET

Can I claim economic stimulus funds that the IRS owes me on my 2020 tax return?

The IRS will use your 2019 tax return if you filed it (or your 2018 tax return if you didn’t file one in 2019) to determine the amount of your payment.

If a change in your financial situation was not taken into account in your 2018 or 2019 tax return – for example the birth or adoption of a child – you can claim that additional amount on your 2020 tax return when you file in 2021. This can include an additional $ 500 for one qualifying dependent that was owed but not delivered with the first check. The Deadline for receiving a missing payment This year was September 30th for Eligible Family members.

I didn’t pay any taxes. Do I still qualify for a payment?

If you didn’t have to file a 2018 or 2019 tax return because you were below income or receiving federal benefits like social security, you can still qualify for a payment. The IRS reported recently that up to 9 million who fall into this non-filter category can owe a payment. You can use the IRS’s non-filer tool to determine if a payment is due.

The IRS extended the deadline from October 15 to November 21 for coronavirus relief payment this year. After this. You can claim it in your tax return for 2020 on November 21 next year.

For more, here’s what you need to know about stimulus checks, if you have one Receive SSDI benefitswho else could be Entitlement to a second stimulus payment and what other benefits might be part of it another aid package.

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