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Second Stimulus Check: Will I Pay Tax On It?

Most Americans citizens, green card holders, or those who had an employment last year have probably received their second Stimulus check. If not, most will receive their second round stimulus payment soon. Those who have received or expected a stimulus check, however, still have a lot of questions. Among them are: how much will my second stimulus check be? When will I get it? Or, most importantly, will I pay tax on my first and second stimulus check? Is there a third stimulus check coming?

How Much is my second stimulus check?

The base amount is $600. However, your stimulus check might be higher or even lower depending on your specific circumstances. See below.

Am I qualified for the second stimulus check?

To receive a stimulus payment, you must have been employed in 2019 and filed a tax return. So, the IRS will look at your 2019 tax return, your AGI and information about your children to determine if you’re eligible.  Here’s how it works:

If your Adjusted Gross Income (AGI) is $75,000 or less, you will receive the full $600 second stimulus check. If you’re making more than $75,000 and up to $87,000, then you’ll receive a reduced amount.

-If you’re married and filed jointly and your AGI is $115,000 or less, you will also get the full $600.

-If you’re making more than $150,000 and up to $174,000, your stimulus payment will be reduced.

If you have children who qualify for the child tax credit (usually under the age of 17), you will get $600 for each child. For example, if you’re a couple with 3 children, you can get up to $3000.

-If you claim to be the head of households, your second stimulus check will be reduced if you’re making more than $112,000.

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Do I pay tax on my second stimulus check?

The answer to this question is a resounding “No.” The IRS does not consider your second stimulus check as taxable income. Just as your first round of stimulus check, your second payment is actually an advanced payment of a new recovery rebate tax credit for the 2020 tax year.

So, that means you won’t have to report it on your tax return when you file it this year. So for those who did not get their first or second stimulus checks, expect to get a boost on your tax refund, or expect a reduction on your liability if you owed tax on your 2020 return. Taxpayers will need to file their 2020 tax returns by April 15.

When Will I Get My Second Stimulus Check?

The IRS started distributing the $600 payment back in December of 2020. However, to this day, some eligible Americans still have not received theirs yet. If you have not received it yet, don’t worry. You might get it soon.  You might experience a delay, because the IRS might not have your bank account information and therefore unable to directly deposit the money into your bank account.

If they don’t have your bank information, then you should expect a paper check in the mail. Either way, you can track the status of your check by going to the IRS “Get My Payment” portal. There, you can tract the delivery date, how much you will get and how you will get paid (whether through direct deposit or paper check). If you don’t get a second stimulus check (when you know you’re clearly eligible), then you can claim your money as a “recovery rebate” credit on your 2020 tax return.

What if you did not file a 2019 tax return?

If you didn’t file a tax return in 2019 because you did not make enough money, you still can get a stimulus check. The IRS will get your information from several sources, such as the Social Security Administration, the Veterans Administration to calculate the amount of your second stimulus check.

Also, if you received the first stimulus check, you will automatically be issued payment for the second one. If you don’t get a check now because you did not file a 2019 tax return, you will get one when you file your 2020 tax return.

Is there a third stimulus check coming?

There might be. The Democrats recently proposed for a third round of $1400 stimulus check. (Note this is a developing story. We will update this article as we receive more information.)

The third stimulus check will be calculated based on your AGI. That means if an individual is making less than the minimum threshold, they can receive the full payment. The IRS will likely rely on your 2019 and 2020 tax returns to determine how much you could receive for the third stimulus payment.

Will you be eligible for the third stimulus check?

If you were qualified for the first and second stimulus payment, you will more likely to be qualified for the third check. But many higher income earners might be excluded in the third round. According to a recent proposal individuals making over $100,000 and couple making over $200,000 will not be eligible.

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The post Second Stimulus Check: Will I Pay Tax On It? appeared first on GrowthRapidly.



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