A client emailed me this today: "This stimulus payment is not a prepayment for next year, is it?"
Someone told me it's a pre-payment on next year's taxes. Does that mean $2400 would come off what the IRS would refund for 2020 tax year?
To be clear for myself, if I was expecting a refund of $3400 for 2020 tax year, would I only receive a $1000 refund because of the $2,400 stimulus check we received?
OK, let's assume I was going to get back $6,000 in 2020 as a normal refund. I'll restate my question....
Will I only get back $3,600 ($6,000 less the $2,400 stimulus check) since I already received the $2,400 stimulus check.
There will be a new credit showing on the return next year. For a family with two kids, the family will get a credit of $3400. If they got the check during the year, the credit will disappear. If they didn't get a check, they will get an additional credit of $3400 on their return to add to their normal refund.
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