2021 Stimulus Wait to File Taxes?

[yachi]

Is anyone waiting for congress to pass the third stimulus before filing taxes?
Our 2019 taxes came out to 45K Married Filling Jointly.  We're expecting 2020 taxes to be 74K, also Married Filling Jointly.  Should we wait to file until we know the stimulus cutoff?

[Lucky Recardito]

We're waiting. But that's because our 2019 AGI was $155K; 2020 was $185K (MFJ). Assuming the phase-out begins at $150K and the payment entirely disappears at $200K (as currently proposed), we will do much better with our 2019 AGI used.

With your numbers, there'd be no difference based on the current proposal. And the counter-proposal I've heard would start the phase-out at $100K for MFJ -- so you'd still be safe.

So I doubt there's a need in your case? That said, there's no harm in waiting -- easy enough to get everything all prepped on your end but wait to press "send" -- as long as you're not in a hurry to receive any refund you may be expecting.

[HipGnosis]

What does any stimulus you might get in 2021 have to do with your 2020 taxes?

[Lucky Recardito]

What does any stimulus you might get in 2021 have to do with your 2020 taxes?

Proposed third Covid stimulus payment (not approved as of yet, so this is speculative) will be paid out as soon as it's approved -- most likely timeline appears to be sometime mid/late-March. Though it's technically a 2021 tax credit, it will be paid out based on your 2020 or 2019 tax filing info, whichever they have on hand. If your 2020 income is meaningfully higher than 2019 (such that it impacts where you fall above/within/above any phase-out or cut-off zone), it's in your interest to wait. If the reverse is true, you might want to file ASAP (so the IRS has your 2020 income to hand when sending payments).

[Lucky Recardito]

... though coincidentally, I just saw on another thread that the IRS may be planning to use 2019 income for everyone, so this all may be moot. I'll still wait, though. No skin off my back. 

https://forum.mrmoneymustache.com/ask-a-mustachian/3rd-stimulus-check-wait-to-file-2020-taxes-since-they're-over-$150k/