, when the IRS officially begins processing returns. This year is particularly important, as your tax returns will play a critical role in claiming any from the -- and will potentially affect your , . This is true both for , and .
The key to understanding your tax filings and your past andis your adjusted gross income, or AGI. Here, we'll help you figure out what your AGI is, how to find it and how it helps determine how much you might owe or , and how much you're eligible to receive with the . We also break down your stimulus payments, including a . You may want to keep other details in mind too, such as what happens if , or if .
CNET also has guides for what happens to your stimulus payment if, if , if or if . If your , you will likely have to this year, or, in certain cases, .
What is my AGI, and what does it mean for my stimulus checks?
Your AGI, or adjusted gross income, is the amount calculated from your total income the IRS uses to determine how much the government can tax you. Your gross income is the sum of all the money you earn in a year, including wages, dividends, alimony, capital gains, interest income, royalties, rental income and retirement distributions.
After you subtract allowable deductions from your gross income (such as student loan interest, alimony payments or retirement contributions), the result is your AGI, or taxable income, which is used to calculate your income tax. Your AGI is reported on IRS tax form 1040, which you can find on line 11 on this year's form.
Since it's a rough estimate of how much money you're bringing in after deductions from all your streams of income, the IRS used yourof up to $1,200 you could get, as well as how much of the you could get.
Congress is currently considering President Joe Biden's, which includes a for the , so there as well. It's possible that the formula will change this time around, however, which or with a third check. The answer depends largely on how a turns out.
How can my AGI help me figure out how much money I could get in a stimulus check?
Aper qualified person, but change crucial that help determine how much your family gets, that is, when a . Your AGI, however, will still likely be the determining factor for how much the IRS will owe you, along with your filing status (single versus joint) and .
This was the case for the first and second checks as well. You can check out our story onfor some examples of how it will break down for you, depending on your situation. For that round of payments, as long as you met the other , single taxpayers with a Social Security number and an AGI under $75,000 received the full amount of $600. As your AGI went up, the amount you were eligible for decreased. If your AGI was $87,000 or above, as a single taxpayer you were no longer be eligible for the stimulus check (this is down from a $99,000 cutoff for the first check).
For the, Congress is currently debating whether or not it will change the income limits by to families below a certain threshold, but again, we won't know for sure until a bill is approved.
How could my AGI change on my 2020 taxes, and how could that affect a third stimulus check?
Since your AGI is calculated from all your sources of income for the year, it can fluctuate based on a wide range of factors, including if you got a raise or lost a job; if you sold a house, got a bonus or received an inheritance; or if you lost or gained money in the stock market.
It isn't yet clear if yourfor a would be based on your 2019 taxes (as with the second check) or on your 2019 or 2020 taxes, whichever was most recently filed. The IRS used the most recently filed tax return to distribute the first stimulus check (either 2018 or 2019), so there's a precedent there.
How can I find my AGI if I filed my taxes in 2019?
If you filed your 2019 federal tax return, pull out your printed records or PDF. If you used tax-filing software like, you should be able to log in to those accounts to find a copy of your return.
You'll find your AGI on line 8b of the 2019 1040 federal tax form.
How can I figure out my AGI if I did not file taxes in 2019?
If you didn't file federal taxes in 2019, you can find your AGI on your 2018 federal tax return. On the 2018 1040 federal tax form, it's on line 7. It's on line 11 on the 2020 form.
What if I can't find my federal tax return?
If you just can't find your tax return, you can find your AGI in two ways:
Method 1: Go to the IRS' Get Transcript portal and choose Get Transcript Online. You'll need your Social Security number, date of birth, filing status and mailing address from your latest tax return. You'll also need access to your email; your personal account number from a credit card, mortgage, home equity loan, home equity line of credit or car loan; and a mobile phone with your name on the account. Once your identity is verified, select the Tax Return Transcript and use only the Adjusted Gross Income line entry. You'll be able to view or print your information here.
Method 2: If you don't have internet access or the necessary identity verification documents, you can use the Get Transcript portal and choose Get Transcript by Mail, or call 1-800-908-9946 to request a Tax Return Transcript. It takes about five to 10 days to be delivered to you.
Does my AGI impact my dependents?
If your AGI makes you eligible for a stimulus check and you, your first stimulus check should have included up to $500 per qualified dependent, and your second stimulus check should have included up to $600 per qualified dependent, since they were . There was no cap on the number of dependents you could claim under 17 years old.
The third stimulus check could change the rules, withfor stimulus checks to include those over age 16, as well as . The proposal also allocates up to $1,400 per dependent, added on to the household's total.
For more information, find out theto know now and .