Ask Terry Questions Third Stimulus and 2020 Tax Return Questions

Third Stimulus and 2020 Tax Return Questions

By Terry Savage on March 31, 2021 | Wild Card

My 2020 tax return was filed electronically on 2/17/21 and it says that it is still being processed as of 3/29/21. 2 contributing factors are: 1) I repaid to Social Security every penny that I received for Early Social Security in 2019 into 2020 (I am not sure if my tax preparer professional did the calculations correctly) and 2) I now qualify for the first $10,200 unemployment no being taxed.

I filed as Household in 2019, and I received a check for $2800 (me and my adult dependent who previously a non-filer).

My daughter filed her 2020 taxes on her own and received the $1200 and $600 for the first and second stimuluses. Now the Get My Payment says that a check will be mailed to her.

It’s an IRS error, so i’m not sure if she will have to repay the $1400 she receives directly.

What do you suggest we do about the third stimulus?

Will the IRS recalculate my taxes with the Social Security Repayment AND $10200 unemployment amount?

Terry Says

Wow, you have a tangled situation.
1. The IRS hasn’t said yet how it will handle that $10,200 tax waiver — but they are going to try to do it automatically. Do not file an amended return. Weshould hear soon.
2. You may wind up with two checks for your daughter — the one you received and the one she received. Do not attempt to send one back to the government! But do be prepared in case they ask for it down the line. It isn’t an attempt to defraud, of course, and it IS their error. So you’ll just have to wait and see what happens.

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