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💰You Might Want To Wait To File Your Taxes 💰

Tax season was pushed back to start on February 12 (but you still only have until April 15 to file/pay what you owe). However, there could be some questions up in the air having to do with upcoming stimulus payments.

As most of us know, lawmakers are still negotiating details of a third stimulus plan that includes how much Americans should receive this time around (one proposal would send $1,400 to individuals earning up to $75K and couples earning $150K and another would slash that benefit to $50K for individuals and $100K for couples).

Whatever they end up going with, the government will decide whether you get a check based on your adjusted gross income (from 2019 or 2020’s tax year).

If you haven’t filed your 2020 taxes, they will use your 2019 income to determine your stimulus eligibility.

SO… if you had a worse 2020 than 2019 (which many of us did) filing your 2020 taxes sooner than later may be a good idea so the government sees how much you struggled before stimulus eligibility is reviewed. On the other hand, if you had a tough 2019 but a better 2020, you may want to wait to file so that the IRS uses your 2019 income to determine your eligibility for stimulus.

Danielle Tufano

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