Where is my stimulus check? How does this affect my return? Do I have to pay this money back? These are all valid questions that we are asked in regards to the stimulus checks received in 2020 and 2021. Today we are here to answer the most common questions we have received from our clients in regards to their taxes and these payments.
In March of 2020, the IRS began sending out $1200 checks to everyone, but the second round of checks had a much more nebulas nature about them due to the election, disagreements in Congress and claims by the former president Trump. After weeks of back and forth, the second stimulus package was passed in December of 2020. People began to receive their checks in the mail over the next several weeks. With the new plan put out by President Biden, and the tiebreaker of Congress being Harris, its very likely a third round of $1400 checks will be issued to everyone as well.
How much are the second stimulus payment for?
SECOND STIMULUS CHECK AMOUNTS FOR SINGLE FILERS
AGI - Payment
$75,000 - $600
$77,400 - $480
$79,800 - $360
$82,200 - $240
$84,600 - $120
$87,000+ - $0
SECOND STIMULUS CHECK AMOUNTS FOR JOINT FILERS
AGI - Payment
$150,000 - $1,200
$154,800 - $960
$159,600 - $720
$164,400 - $480
$169,200 - $240
$174,000+ - $0
STIMULUS CHECK AMOUNTS FOR HEADS OF HOUSEHOLD & 1 CHILD
AGI - Payment
$112,500 - $1,200
$116,500 - $1,000
$120,500 - $800
$124,500 - $600
$128,500 - $400
$132,500 - $200
$136,500+ - $0
Will I need to pay back the stimulus check?
As long as you were paid based on the amount listed above, you will not need to pay back your check. In fact, if you failed to receive a check, but fall into these brackets which indicate you are owed money, you can either request a check through THIS LINK, or receive a tax credit on your next filing.
Will my second stimulus check be taxed later?
The short answer is no. You will not be asked to pay a tax on any of the money received through economic impact relief funds.
I received my first payment, but closed my account before my second payment, what next?
If you are using direct deposit and the payment came through in the first round of relief, do not fret, the IRS still has your check after failing to deposit it during the second round of payments. You can either request it be sent by mail with THIS LINK, or use it as a tax credit when you file your taxes.
What if I didn't file a tax return for 2019?
Our first advice would be to contact our office and let us walk you through filing your taxes and staying up to date. The lack of a 2019 tax return means that the IRS will likely not send out your checks until you file these taxes or your 2020 taxes. Even if filed late, the check will still be sent out immediately after receiving your paperwork.
New member of the family as of 2020?
If you recently had a child in 2020, you will not qualify for the additional $600 stimulus because they were not listed as a dependent in 2019. However, this will allow for an additional $600 recovery rebate credit on your 2020 return.
Elderly, Children turning 17 or College students being claimed as a dependent?
If you filed a 2019 tax return and claimed your child as a dependent, you'll get an extra $600 added to your second stimulus check for that child—as long as your son or daughter qualified for the child tax credit in 2019 (i.e., was 16 years old or younger).
This all depends on your 2019 taxes. If you claimed children as dependents, elderly as dependents or college students living at home, a $600 will be added to your check for them. Even if they are in college or over the age of 65, those who don't pay at least half of their own expenses will not be qualified to receive stimulus payments.
Those serving time in prison, will they receive the second stimulus check?
Yes, the bill as written does not preclude felons, or those serving time behind bars.
We understand that this likely didn't answer all of the corner cases and odd-end questions you may have in regards to the stimulus payments or your tax returns. With a new round of checks likely to be sent out in the coming months, we know that it will raise even more questions. We will do our best to keep everyone updated through this blog, however faster answers can be reached by calling our office directly and inquiring about your tax return. If you have yet to receive a payment or file for 2019/2020, please contact us to schedule a time to begin this process. Our office is more than willing to help those filing late and walking our clients through confusing or difficult tax situations. Don't let the large amount of disinformation or false statements cause you a headache, get in touch with tax experts like us and clear up all the confusion. We are always here to help and take pride in serving our local Fort Collins community.