Tax returns for the 2020 tax year began being accepted by the IRS this month.
People often choose to submit their tax returns early in order to obtain their refunds faster.
This is because they do not have to worry about doing taxes. It might, nonetheless, be in the best interests of some folks to wait for a little before they send Uncle Sam their taxes.
iHeart reports some people may lose $1,400 of the third stimulus by filing their taxes early.
Another relief package is being drafted, which includes a third stimulus package that will be distributed to millions of Americans who meet the eligibility requirements.
It remains to be seen what requirements those payments will have, but they are likely to be no different than those used for the first two direct payments.
The money went entirely to individuals who earned less than $75,000 and to couples who earned less than $150,000.
Those who earn between $75,000 and $100,000 and those earning between $150,000 and $200,000 will begin to see their amounts phased out.
IRS tax returns for 2019 were used to determine eligibility.
This will occur again for the third stimulus check, except if you file your 2020 tax return, which will be used in its place.
You are no longer eligible for the third stimulus check if you filed your taxes now.
This still stands even if you received the first two checks because your income met the requirements for 2019, but your finances changed last year and no longer meet the requirements.
You should wait until Congress passes the new relief bill before applying for the check.
The transition is expected to take place in mid-to-late March, but we have seen delays in the past.
If, however, you did not receive the first two stimulus checks because you didn’t qualify in 2019, but your situation changed last year and you qualify now, you should submit your tax return as early as you can so that the IRS can know about your new income and send you your stimulus checks.