With all of the last minute changes to the Tax Code - and those stimulus check reconciliations - it was clear that the Internal Revenue Service (IRS) was going to have to make revisions to tax forms used to file 2020 tax returns (the tax returns that you’ll file in 2021). Most tax professionals expected a delay in getting those forms together, but the the IRS has issued a statement confirming that “updates to key federal tax forms and instructions are complete and will be available when Americans begin filing their tax returns.”
I must admit that I’m a bit surprised about the delay. The new stimulus checks are 2021 income events so why would they delay 2020 tax forms? Unless they are temporarily short-handed due to the processing of the new stimulus checks and were late preparing those tax forms for 2020.
Won’t make a difference for me since I always wait until I receive all my 1099 forms from banks before filing. By then (early February), IRS should have updated their 2020 tax forms I’d hope.
I’m pretty certain the $1400 checks are a lock at this point, though. It was scanchain who schooled me, on another thread, that the Democrats can make this happen now with no Republican help whatsoever.
Probably doesn’t. Technically these are tax credits that should not affect income or AGI. But if they’re accompanied by a tax form that needs to be mentioned in the tax return, and tax returns are done based on the calendar year (1/1-12/31), then it would impact tax forms (both 2020 and 2021 forms would have to allow for this credit to post in either year).
Ours came on 1/4. They are non-taxable any way so the only thing that could delay the IRS would be to make sure to keep track of who got them or not. For those who did not get any checks say because they did not file in 2018-2019 but have income in 2020, I guess it matters if they are issued in 2020 and 2021 for figuring out how much credit they can claim on their 2020 return. Maybe that’s the meaning of the reconciliation language in the press release.
Well I didn’t get my second stimulus because the IRS hasn’t processed my 2019 return yet. I filed it in June, before the extended deadline, but it had to be on paper. Anyway, they haven’t processed it yet, so I’m supposed to get the stimulus money as part of my 2020 tax filing (which is probably why they had to update forms).
Unlucky for me, while my 2019 income was under the income limit, my 2020 income is likely to be well above it, and I’ve got a feeling I’m not going to get anything due to that.