Here’s How To Get The Stimulus Check You Missed Out On
Today the Senate took a step towards passing the $1.9 trillion dollar stimulus bill. According to CNBC the Senate plans to finish the bill this week.
After the Senate makes any changes needed, it goes back to the House which is expected to pass the bill by mid-next week. The goal is to have it finished and on the President’s desk by March 14th.
The bill includes a $1,400 payment per individuals with Adjusted Gross Income up to $75,000 and lesser payments for incomes up to $80K. Any individual making more than $80K, or head of household $120K, or married couple making more than $160K would get nothing.
Here’s where it gets interesting…
The previous payments were always based on your 2019 income. If you made less in 2020, and you file your taxes before the bill gets passed, you may be eligible for this next payment. Plus there’s bonus money when you file. I’ll explain.
Example: If as an individual you had an AGI of $82,000 in 2019 you received stimulus payments. Just reduced ones. Say you made less money in 2020. Not uncommon. Maybe your 2020 AGI was $60,000. By filing your taxes now you might be eligible for the full upcoming $1,400 stimulus check. Providing you file early enough that any stimulus would be figured on 2020 income instead of 2019 income. Not sure when that cutoff is.
Here’s something I noticed when I was doing my taxes. Line 30 on form 1040. It’s called the Recovery rebate credit. If you made too much money in 2019 to get the full stimmy, but made less than $75K in 2020, this credit pays you the amount you didn’t receive as a tax refund. Here’s the IRS explanation.
If this situation affects you, consult your tax professional on how you can maybe lower your AGI to get under the threshold. It’s worth it. I did it by maxing out my IRA contribution.
I’m not a financial professional, this is just information to help you ask the right questions when you talk to an actual pro. I’m just a big nerd when it comes to numbers.
Good luck! – Joe