OP received a stimulus payment in 2019. They made enough more money in
2020 that they wouldn't qualify if there is another stimulus payment. He's asked if (in case there might be another payment) he should file an extension for 2020 in hope that they will use his 2019 income to determine the amount of a stimulus payment he might received.Any thoughts? I haven't looked into this so don't know how it works.
Thanks.
EIP #3 ($1400 max) is an advance payment for the refundable 2021 Recovery Rebate Credit. If the IRS has your 2020 tax return, the payment will be based on that return. If they do not have the 2020 tax return, they will use the 2019 tax return. You can do the math.
Alan snipped-for-privacy@vacationmail.com wrote in news:s7c47g$7b3$ snipped-for-privacy@dont-email.me:
Thanks Alan.
_For_ 2019, paid in 2020, I think you mean. Hard to believe now, but just two short years ago, none of us had heard of COVID.
Does the client have their bank account information on file with the IRS? C'est-a-dire, did they get their payment in 2020 by direct deposit, not by paper check? If so, I think they'd already have received the latest stimulus if they were going to get it.
If their bank account information isn't on the IRS files, then Alan's advice sounds sensible to me. (File for an extension, then don't file
2020 taxes till after receiving a paper check.)BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.