The IRS released an update to their public listing of questions and answers for the Economic Impact Payment (EIP) 2020 with regard to 2020 tax returns. This update suggests that a number of citizens needed more information on their EIP, with respect to the following: “Do I need to pay back all of some of the Payment if, based on the information reported on my 2020 tax return, I don’t qualify for the amount that I already received?”
Will I need to give my stimulus check back?
Per the IRS’s webpage listing for EIP 2020, in the latest update (August 3, 2020) there is no provision in the law that would make a recipient of the EIP (based on their 2018 or 2019 tax return), pay back all or part of the payment.*
*IF “based on the information reported on their 2020 tax returns, they no longer qualify for that amount or would qualify for a lesser amount.” The IRS clarified that the first (and likely the second) stimulus check (aka EIP) are based on the tax years before the payment was calculated.
The IRS noted that citizens of the United States should keep “Notice 1444, Your Economic Impact Payment,” with 2020 tax records. This notice will appear SEPARATE from your check. “The IRS will mail Notice 1444 to your last known address within 15 days after the Payment is made.”
Will I get another stimulus check in 2021?
Once we reach 2021, if further EIC payments are needed due to an extended economic recession due to COVID-19, Novel Coronavirus, and global pandemic, it’s likely they’ll be figured based on 2020 tax records and/or 2019 tax records. The IRS has made way for this possibility, specifically, when addressing a question about eligibility re: 2019/2018 tax returns.
“If the IRS has determined that a taxpayer was not eligible for a payment based on the taxpayer’s 2018 tax return, and then the taxpayer files a 2019 tax return that shows eligibility, the IRS will not issue a payment in 2020 based on the 2019 tax return. These taxpayers can claim amounts based on their 2020 tax returns in 2021 if they remain eligible for 2020.”