To get the next stimulus check, you may have to shake up your taxes

It often pays to file your taxes early, and this year there may be more benefits than usual.

Not only are you ready to get your tax refund sooner, but you might be able to make sure you get a bigger stimulus check – or a stimulus check, period – when the new round of cash comes in. .

President Joe Biden has agreed to a change that will make it harder for millions of Americans to get a payment of $ 1,400. If you were counting on more relief money to help pay your bills or pay off your debts, here’s why you might want to get your 2020 tax return pronto.

The next stimulus checks will be more “ targeted ”

Democrats who control Congress hold the Senate by a hair and needed the votes of all senators in their own ranks to push through Biden’s $ 1.9 trillion COVID rescue package on Saturday. To convince the more conservative Democrats in the Senate, Biden agreed to a compromise restricting eligibility for upcoming third stimulus checks.

The intention is to “target” payments to Americans most in need – and away from those with higher incomes. Here is how it would work:

• People earning less than $ 75,000 and couples earning less than $ 160,000 would receive the full $ 1,400. Then the payments start to disappear.

• Single taxpayers earning over $ 80,000 and co-filers with incomes over $ 160,000 would not receive any stimulus checks this time around.

Previously, the thresholds were income of $ 100,000 for individuals and $ 200,000 for couples. Nearly 17 million fewer American adults and children will receive payments this time around, according to an analysis by the Institute on Taxation and Economic Policy.

Congress is moving fast – and you should too

The IRS will review your last tax return to determine if and for what amount you qualify for the stimulus check.

This means that if you have faced a significant drop in your income in 2020 due to the pandemic, you will want to get this information from the tax agency as soon as possible, as it will base your eligibility for the stimulus money on the last return you filed.

The story continues

So, for example, if you made $ 77,000 in 2019 but only $ 65,000 in 2020, your 2019 income would disqualify you from a full payout, but your 2020 income would earn you $ 1,400.

The Aid Bill is now sent to the United States House, where a final vote could take place as early as Monday. If the president signs the law quickly, the IRS could start processing stimulus checks in a matter of days – meaning you might not have a lot of time to submit your 2020 tax return, which will help determine your payment.

Lucky for you, electronic filing using today’s tax software can get your return into the IRS system almost instantly.

What if your tax returns didn’t get you a stimulus check this time around?

If new income barriers to getting stimulus checks keep you from receiving your $ 1,400 – even if you quickly file your 2020 tax return – here are a few options for essentially writing your own stimulus check:

• Reduce the cost of your debt. If you have a lot of credit card debt, you’re probably paying a ton of interest. Tame that debt – and make it disappear faster – by consolidating your balances into one low-interest debt consolidation loan.

• Lower your mortgage payment by refinancing. If you have a mortgage and haven’t looked for a lower interest rate in the past year, what are you waiting for? Mortgage rates remain historically low, and refinancing your home loan could lower your monthly payment.

• Back up your policy. You don’t always have to pay a premium on the best insurance policies. From auto insurance to home insurance, shop around and make sure you’re not paying more than you should.

• Stretch your money. Look for ways to find a small budget within your budget. Turn down the heat a little to save electricity. Get rid of your cable or one or two streaming services. Plan your meals for the week and cut down on expensive ingredients. And download a free browser extension that will automatically find you deals and discount codes every time you shop online.