What if situation changes in 2020 tax return?
Since the stimulus check technically is an advance credit for 2020 (return filed in 2021), what would happen if I receive the full amount now based on my 2019 situation, but by the time I am filing my 2020 return either my income has increased substantially or one of my 2019 dependents no longer qualifies as a dependent? Is it possible the credit will have to be “reconciled” on the 2020 return, similar to how the Advance Premium Tax Credit is now (Form 8962)? Thanks for your insight.
Terry Says
It is NOT an advance credit. They are calling it an “advance rebate” — and it is not taxable. This “advance rebate” is just the wording they needed to use to technically justify what is basically a free gift!
Next year when you file in 2020 if you were UNDERPAID they will give you an additional tax credit for 2020. But if you are overpaid in the amount of the stimulus check for any reason, they will not take it back in any way. This comes direct from TurboTax!
