How Filing Your Tax Return Early (or Late) Could Boost Your Third Stimulus Check

There are plenty of good reasons to file your tax return early this year. You'll get your refund faster, it cuts down on tax identity theft, and there's one less thing to worry about for the next few months. Plus, for some people, it could also mean a bigger third stimulus check! But before you rush out to find a CPA or buy tax prep software, there's another side to this story. For other people, filing early could result in a lower stimulus check – and you don't want that.

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So, should you file early or file later? Which camp you're in generally depends on whether there were any significant changes to your family or financial situation last year. That's because your next stimulus check is likely to be based on either your 2019 tax return or your 2020 return – whichever one was most recently filed when the IRS starts processing your next stimulus payment.

When the IRS is ready to , they will need to know your tax filing status, how many dependents you have, and your adjusted gross income (AGI). If you file early this year, the IRS will be able to get that information from your 2020 tax return. If