I made a lot more money in 2019 than 2020 so I got screwed with the stimulus which is based on tax year 2019. My understanding is this will be adjusted on this year’s tax return, so we’ll see. My question is about the extra $1400 (if it passes) that tops off the $600 we got in the recent stimulus to $2000. If they base it off my 2019 taxes but I already filed my 2020 taxes how would that work?
Obviously we won’t know until the law is passed.
The last stimulus check was based on either your 2018 or 2019 taxes, depending on what had been filed. So most likely the next check would be based on the 2019 or 2020 taxes, depending on what is filed.
And yes, technically, the stimulus payments are a rebate for your 2020 taxes. You got paid based on the estimate. So if your income went down, you’ll receive the difference on your 2020 taxes.
I assume the opposite also applies- if you get paid more, you’ll owe them money back?
What if I expect my 2020 income to be substantially different than my 2019 or 2018 income?
The advanced stimulus payments will be determined based on 2019 income (or 2018 income if that is all that is available to the IRS) and the final amount of the benefits will be determined based on 2020 income and settled on the 2020 tax return. So individuals who ultimately qualify for more money than they receive this year—a person whose income drops from $100,000 to $70,000, for example—would receive the rest through a larger tax refund or smaller tax payment in early 2021. But for those who ultimately qualify for less money than they received this year—a person whose income rises from $70,000 to $100,000—may keep the advance payment and will not have to pay it back
Of course, what AlsoNamedBort says (about being able to keep any stimulus overpayment you got) may or may not apply to any future laws Congress passes about future stimulus payments.