Congress is feverously working to finalize President Biden’s $1.9 trillion stimulus package by March. Once passed this would potentially send out a third stimulus check of up to $1400 per person for eligible individuals and families. If this timeline holds it will mean the new stimulus checks will be sent right in the middle of this tax season. That will leave a lot of people wondering when should I file my taxes?
Well, it depends (doesn’t it always when it comes to tax changes). The most recent information we have seen says the IRS will base your stimulus check on the most recent filed tax return. That could be your 2019 or your 2020.
First you should know there is a phase-out, meaning you will not received the $1400, if you are single and made more than $75,000 or married and made more than $150,000.
So there is only one scenario where you would want to wait to file your tax return until after the stimulus checks are issued:
If your 2019 return has you below those thresholds but your 2020 return will have you above those thresholds – you will want to hold off filing your return until after the stimulus check has been issued. Simply because you would receive the money, but not have to pay it back.
For most people however, we recommend filing your taxes as soon as possible for several reasons:
- You be able to get your refund as soon as possible.
- You’ll be able to get any missing stimulus money that you didn’t not receive the first 2 times.
- You’ll have the opportunity to correct your direct deposit information and address. Which could get the third stimulus check to you faster.
- Had a baby in 2020? You’ll be able to add those dependents to your tax return which will increase the amount of the third stimulus check.
If you would like to talk more about your particulare situation just give us a call at 706-227-9191
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