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Just thinking out loud about these pending new stimulus checks that Congress may (or may not) pass...

In reference to the potentially upcoming new stimulus checks that may be issued...let's assume that I have a client whose 2019 AGI was UNDER the income threshold and accordingly would receive a 2021 stimulus check if the IRS looks at his 2019 tax return as reference to see if he qualifies for a payment.

Let's further assume that the same client's 2020 AGI is OVER the AGI threshold and if I were to e-file his tax return this afternoon, he would not be eligible to receive the next stimulus payment that is likely going to be coming because the IRS would reference his 2020 AGI to see if he qualifies for a payment.

Why would I e-file his 2020 tax return this afternoon and disqualify him from receiving a $2,800 stimulus check?

Am I missing something here?

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7 Replies 7
Level 11
Level 11

Assuming they look at 2020's....I would hold back if they do indeed issue out the 3rd round. 

I held back filing 2019's when they were determining the first check. 

Level 15

With 99/1 for not paying EIP3 to high income taxpayers, I wouldn't be surprised if there is a clawback provision.  Probably not a bad idea to hold out for a while to get a better sense of the direction the relief package is going to take.

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Still an AllStar
Level 15

Why would you transmit the return this afternoon anyway?  Intuit is going to sit on them so why not wait until after the 2/12 start date?  It gives you more flexibility plus allows you to correct for the "oops, I forgot a W-2" situations. 

This week's special - free roadrunner dinner with every return (legal disclaimer - you catch it and we'll cook it)

Ha ha- I’m not actually e-filing his tax return this afternoon. My question is a hypothetical. I won’t be filing any tax returns for the next seven days. There’s really no need to e-file any tax returns until February 12. When reading my question above, pretend that today is February 13. 

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Level 15
Level 15
Same thing happened with the first one, I had a few clients that held off on their 2019 returns because they would have been disqualified, but 2018 income gave them the full advance.payment.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 12

@Ephesians3-14 "Why would I e-file his 2020 tax return this afternoon and disqualify him from receiving a $2,800 stimulus check?"

Maybe because you advised him of the possibilities and let him make the choice?  But you always ask clients what to do, rather than telling them what to do. So your question is really to us, asking if we keep our clients in the dark about their choices.  

No.  I don't.  

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"So your question is really to us, asking if we keep our clients in the dark about their choices."

Nope, that definitely was not my original question to the group. My question was about whether I was missing anything in my analysis. Based on the feedback so far, it doesn't sound like I am missing anything.

The good news is that I always advise my clients and let them make the choice. Makes no sense for me to make that decision on my own - that's not good practice management, in my opinion. Why take the unnecessary risk?