3rd stimulus check - wait to file 2020 taxes since they're over $150k?

[YTProphet]

On my 2019 taxes my AGI was somewhere in the $130s. On my 2020 taxes, my AGI will end up being in the $170s. From what I've read, Democrats will be leaving the income thresholds the same for the 3rd round of stimulus checks, which means married filing jointly under $150k receives the full payment.

If I want to maximize my stimulus payment, should I wait to file my 2020 taxes until the 3rd round payments have been made? Also, is that payment refundable once I file and it shows that I wouldn't have been eligible based on 2020 taxes?

Not interested in debating the merits of doing what I can (lawfully) to receive a stimulus payment. I have no issue with it.

[seemsright]

We are in the same boat and we are waiting. It helps that we will owe $2k to our state (they are taxing the stimulus) And I am willing to bet the feds move the filing date. When we owe we always wait till the end to file.

[therethere]

PTF. We moved solidly into the phaseout range this year. Whereas in 2019 I believe we just squeaked by with 148k AGI. I've got the same question as to whether I'll have to "pay back" the third stimulus since it is phrased as a tax credit.

[dandarc]

PTF. We moved solidly into the phaseout range this year. Whereas in 2019 I believe we just squeaked by with 148k AGI. I've got the same question as to whether I'll have to "pay back" the third stimulus since it is phrased as a tax credit.

If it is like the previous ones, you won't - I thought it was going to be like PTC where you can get the tax credit pre-rebated based on estimates but settle up come tax time. But they put language into the law such that rounds 1 & 2 don't have to be repaid if 2020 AGI is over the limit.

So it seems likely to be 'lowest of  2019, 2020, 2021 AGI' for this round. But of course this latest stimulus hasn't even passed the house yet, so who knows really.

[terran]

Unless you have some burning desire to file now you may as well wait until you have more information. If the rules are like they were last time you'll get more by waiting.

[seattlecyclone]

From my reading of the draft bill they'd use 2019 income numbers for everyone in a first pass. They would then go back in the summer and send additional payments to people who filed for 2020 and would have received more money based on that year's income. If that's how the final bill reads it won't matter when you file for 2020, but since it hasn't actually passed yet I can understand waiting a bit to be on the safe side.

[slappy]

I asked this question in another thread and someone posted this, which I was thought was good info:

I've seen a lot of new articles/stories saying the stimulus is based on your 2019 or 2020 income, depending on the latest return filed when the stimulus gets doled out.  However, what I've read most places is sorely lacking in completeness.

The bill actually says it's a tax credit for the 2021 tax year, for which you would file your return in 2022.

The advanced payments are based on 2019 and 2020 tax returns.

Government Reference:

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/7.%20Tax_sxs.pdf

"Treasury is directed to issue this credit as an advance payment based on the information on 2019 or 2020 tax returns."

"Taxpayers receiving an advance payment that exceeds their maximum eligible credit based on 2021 tax return information will not be required to repay any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the amount of the advance payment, taxpayers can claim the difference on their 2021 tax returns."

Government Reference:

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/7.%20Tax.pdf

"8 ‘‘SEC. 6428B. 2021 RECOVERY REBATES TO INDIVIDUALS. 9‘‘(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2021 an amount equal to the 2021 rebate amount de-termined for such taxable year."

Questions and answers - non-government reference:

https://www.forbes.com/sites/anthonynitti/2021/02/09/democrats-propose-round-three-of-covid-related-stimulus-checks-what-you-need-to-know/

Q: Is it determined based on our 2021 tax returns, because if so, we’re going to be waiting awhile, and I’d like that cash ASAP.

A: It works like this, we will all ultimately claim a “credit” equal to the stimulus payments we are owed based on our 2021 tax information, on our 2021 tax returns. But to speed up that process, the checks you receive if the bill becomes law will be based on either your 2019 or 2020 tax return.

[Proud Foot]

Definitely waiting until the deadline to file and hope the stimulus is passed and implemented before that date. Based upon the phaseout numbers we will receive the full amount based on our 2019 return and will be completely phased out based on our 2020 return.

[Lucky Recardito]

Waiting over here, for all the similar reasons.