President Biden assured everyone that the rollout of a third round of stimulus checks would be smooth and seamless with 100 million Americans receiving them within 2 weeks of passing the bill on in early March. This followed a second $600 stimulus check under President Trump earlier this year and the original $1200 stimulus in 2020.
Just as with the first two stimulus checks, there will be many questions and possible delays in receiving the relief checks, but we are here to once again clear up some of the confusion. If you have still to receive your first two stimulus checks, and have filed taxes with us before or are looking for accounting services, please give us a call and we can help you check to see if you're qualified. If you are we will walk you through receiving your money or getting a credit on your next tax return.
The third stimulus check like the first two is calculated by your 2019 tax return as well as your 2020 tax return. Remember the 2020 tax return deadline has been extended to May 17th 2021. If you are a family with kids, or at least new kids, you will want to file taxes early for 2020. This 3rd round of check includes a child credit which pays up to $3,600 for each qualifying child under 6 years of age and $3,000 of credit for children between 6 and 17 years of age. If you claim your child as a dependent early, you will qualify for an additional payment. So for many of us it will be $1,400 and for parents it will be more.
President Biden did promise to have them in people' hands by March 25th 2021, but that will not be everyone. Some will be delayed especially if your previous checks also faced delay. This could be due to an unfiled 2019 Tax Return, and if this is the case, please sit down with us and we can help you with your taxes from our Fort Collins CPA Office.
Here's a handy link to check the status of your return: IRS Stimulus Checker.
Everyone making less than $75,000 annually will receive the full amount. There are added complexities for those making $76,000 thru $80,000, see below:
$75,000 -> $1,400
76,000 -> $1,120
$77,000 -> $840
$78,000 -> $560
79,000 -> $280
$80,000 and up -> $0
This stimulus package also has a clause for heads of households with AGIs of less than $112,500 to qualify for the full amount while those between $112,500 and $120,000 have adjusted amounts. Furthermore, couples with AGIs under $150,000 will qualify for the full amount and couples with AGIs between $150,000 and $160,000 will receive adjusted amounts.
$150,000 -> $2,800
$152,000 -> $2,240
$154,000 -> $1,680
$156,000 -> $1,120
$158,000 -> $560
$160,000 and up -> $0
Remember, The IRS does not consider stimulus checks to be taxable income. This means that you do not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.
There are many rules that need to be followed, but this money is not directly taxed. We suggest giving us a call and scheduling an appointment to review your 2020 Tax Return. If you need help with your accounting, we offer extensive accounting services as well.