Why you should start filing your tax returns TODAY if you want extra stimulus money

AMERICANS are being urged to start filing their tax returns as soon as possible if they want extra stimulus cash. Because of the coronavirus pandemic, there have been changes in the tax code that will impact returns and refunds. The Internal Revenue Service begins processing tax returns today, meaning returns can be submitted between now and […]

AMERICANS are being urged to start filing their tax returns as soon as possible if they want extra stimulus cash.

Because of the coronavirus pandemic, there have been changes in the tax code that will impact returns and refunds.

Getty Images - Getty

Americans are urged to file their tax returns as soon as possible[/caption]

Getty - Contributor

The tax return season begins today[/caption]

The Internal Revenue Service begins processing tax returns today, meaning returns can be submitted between now and April 15.

Those filing tax returns earlier this year will see a faster refund, and “for some people, it could also mean a bigger third stimulus check,” advises Kiplinger.

Many Americans have received a stimulus check based on their tax returns.

But the IRS is encouraging those who don’t usually file taxes, as well as those who should have got more money. to file if they have had a change in circumstance from 2019 to 2020, such as having a baby or an income drop.

By filing a tax return, you can get recovery rebate credit, which could lead to a larger return if you don’t owe the IRS.

Americans should ensure they know how much they got in previous stimulus checks before filing taxes this year, to avoid complications.

The stimulus direct payments are not taxable at the federal level.

However, people will need to know the exact amounts of those payouts to process their 2020 federal income tax return.

Your next stimulus check “is likely to be based on either your 2019 tax return or your 2020 return – whichever one was most recently filed when the IRS starts processing your next stimulus payment”, Kiplinger explains.

The IRS calculates people’s third check based on their tax filing status, adjusted gross income (AGI) and the number of dependents.

So the earlier you file your tax, the more likely revenue officials will use details from your 2020 return.

If you delay filing your tax return, the IRS will instead look at your 2019 information.

“Depending on your situation, that could give you an opportunity to alter the amount of your next stimulus check by timing the filing of this year’s tax return,” Kiplinger adds.

It could help some become eligible for payments or a bigger tax break.