1200 Stimulus Check Taxes Next Year

Here s what another round of stimulus checks will mean for your 2021 taxes published tue aug 11 2020 11 47 am edt updated tue aug 25 2020 1 07 pm edt robert exley jr.

1200 stimulus check taxes next year. Be it 600 or 1 200 for individuals and 1 200 or 2 400 for. For example if you owed 1 000 in taxes but had a refundable tax credit of 1 200 you d get a 200 tax refund check from uncle sam. Important stuff you need to know.

Stimulus checks and your 2020 taxes. They re officially addressed in the cares act as a recovery rebate for individuals. Next year if you do your taxes and you re supposed to get a refund for 2 500 the tax form would have a line where you list the stimulus payout you received in 2020.

And next year after taxes for 2020 are filed. Those in this group can claim their payment on next year s taxes. According to the article if you were eligible to get 1 000 next year and your stimulus check aka tax credit was 1 200 you d be eligible to receive 2 200.

Think about it this way. Your taxes play a large part in stimulus check eligibility. Now the payments end completely for single filers making 87 000 per year and above and it ends for married couples worth 174 000 per year and above.

The amount you get in your stimulus check in the coming months is what you get as determined by your 2019 or 2018 tax return. With the 1 200 checks the payments ended. Your federal tax returns play an outsize role in your second stimulus payment and likely your third payment too.

The 600 checks will only go out to individuals making less than 75 000 a year or couples making less than 150 000. Because you re getting what amounts to a refundable tax credit now in the form of a stimulus payment rather than waiting to get the money from the credit in 2021 when you actually file your 2020 tax return you re in effect getting an advanced refundable tax credit. They will not be included in your 2020 income.