Turbotax refund delay 202212/27/2023 If you have an adjusted gross income (AGI) of up to $75,000 ($112,500 if filing head of household, $150,000 if married filing jointly), you could be eligible for the full amount of the recovery rebate. So, how do you know if you may be eligible to receive a second stimulus payment? For up to date information on your stimulus payment, visit the IRS Get My Payment tool. The IRS has begun to issue stimulus payments using the most recent information they have on file, likely from your 2019 tax return, either by direct deposit or by check.Īs part of the income tax filing, the IRS receives accurate banking information for all TurboTax filers who receive a tax refund, which the IRS is able to use to deposit stimulus payments. There is nothing you need to do to get a stimulus payment. This means a family with two children could receive $2,400. Here's what relief is included: Stimulus Payments for Individuals and Joint TaxpayersĪ second wave of direct stimulus payments for millions of Americans – up to $600 for eligible individuals, $1,200 for joint taxpayers, and an additional $600 for each dependent child under 17 – is on the way for millions. The bill provides relief through multiple measures and expands many of the provisions already put into place under the CARES Act, including a second round of direct stimulus payments to individuals and families. The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 – a $900B relief package to deliver the second round of economic stimulus for individuals, families, and businesses was signed into law December 27, 2020. In the meantime, tax filers who have qualified for relief checks or tax rebates might want to wait until there's more guidance from the IRS before filing, if they haven't filed already.For information on the third coronavirus relief package, please visit our “ American Rescue Plan: What Does it Mean for You and a Third Stimulus Check” blog post.Ī second stimulus is coming for millions of Americans. However, the site also says that the "department cannot comment on any federal tax consequences of the rebates and relief payments." Similarly, in New Mexico, state taxes on a 2022 refundable income tax rebate meant to cover rising costs will not be charged, according to the state's Taxation and Revenue Department website. But it also concedes that the funds could be taxed federally. In California, for example, a special Middle Class Tax Refund meant to cover the costs of rising inflation won't be taxed by the state, according to the state's Franchise Tax Board. Stimulus payments related to Covid-19 relief were not taxable, but it's possible that rebates related to inflation relief or tax surpluses might qualify for federal taxation. Each state relief program is run differently, too, which adds to the confusion. Most of those 18 states are still waiting to confirm whether the rebates will incur federal taxes, says Richard Auxier, a Tax Policy Center senior policy associate.įederal taxation will depend on federal law and the stated purpose for each rebate, according to the Wall Street Journal. It's not yet clear which specific states require more guidance, but at least 18 enacted one-time refunds in 2022, according to the Urban-Brookings Tax Policy Center: Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Maine, Massachusetts, New Mexico, New York, Oregon, Rhode Island, South Carolina and Virginia. The IRS recommends that tax filers who qualified for relief checks wait until "additional guidance is available or consult with a reputable tax professional." The IRS also recommended that those who have already filed a 2022 tax return not file an amendment. "We expect to provide additional clarity for as many states and taxpayers as possible next week." The "rules surrounding them are complex" and will require more time to determine the tax implications, according to an IRS statement.
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