Stimulus checks

[aparch]

Re: Stimulus checks

75k single, 150k married, 112.5k head of household. Every $100 more of AGI, $5 less in your check.

So a $250 return to the government in 2020.

 

[jen]

Re: Stimulus checks

Thanks geezer and SJHovey - that is what I was thinking.

It was probably too forward-thinking for the government to offer an "opt-out" (and probably affects very few people this way).

 

[unofan]

Re: Stimulus checks

Here is the way I understand it.

Let's say that in 2018 you had $70,000 adjusted gross income, and you haven't done 2019 taxes yet. You'll get the full $1200.

Then, lets assume after you do the 2019 taxes you report AGI of $80,000 for 2019. Let's further assume that under the sliding scale of stimulus money someone with $80,000 AGI is only supposed to get $1000 in stimulus money (I don't know what that sliding scale is, just that it ends after you exceed $99,999.)

In that instance, in 2020 you would supposedly owe $200 back (the difference between the $1200 you got and the $1000 you should have received).

If your AGI is $100,000 or more for 2019, you shouldn't have received a check at all, in which case you'd owe the full $1200 back in 2020.

That's my understanding.

The question, though, is whether a check for $1200 that is properly based on 2018 AGI (as filed in 2019), will need to be paid back if 2019 AGI is markedly higher (or conversely, someone who made $100k in 2018 but gets laid off and only makes $40k in 2019 gets the full $1200 when they file next April). I don't know the answer to that.

 

[SJHovey]

Re: Stimulus checks

The question, though, is whether a check for $1200 that is properly based on 2018 AGI (as filed in 2019), will need to be paid back if 2019 AGI is markedly higher (or conversely, someone who made $100k in 2018 but gets laid off and only makes $40k in 2019 gets the full $1200 when they file next April). I don't know the answer to that.

From what I've read, I think in the first instance you'd have to pay it back. I think the plan is that 2019 AGI is the year upon which they want to calculate your eligibility, but recognize that many may not have returns filed by the time payments are made, thus the temporary use of 2018 AGI. Once 2019 AGI is submitted, 2018 becomes meaningless in terms of eligibility.

I think your second question is much more interesting. I don't think I've heard anyone discuss that. I'm not eligible under 2018. I've completed my 2019 return but haven't filed it yet, and I'm not eligible that year either. But I know that if I had been, I would have certainly gotten my return in right away. It seems to me that in your second example you should get that stimulus money, presumably as soon as you file the 2019 return (due by July). If I thought I was eligible but delayed filing the return, as soon as I filed it I'd certainly try to see if I could get it.

 

[unofan]

Re: Stimulus checks

From what I've read, I think in the first instance you'd have to pay it back. I think the plan is that 2019 AGI is the year upon which they want to calculate your eligibility, but recognize that many may not have returns filed by the time payments are made, thus the temporary use of 2018 AGI. Once 2019 AGI is submitted, 2018 becomes meaningless in terms of eligibility.

I think your second question is much more interesting. I don't think I've heard anyone discuss that. I'm not eligible under 2018. I've completed my 2019 return but haven't filed it yet, and I'm not eligible that year either. But I know that if I had been, I would have certainly gotten my return in right away. It seems to me that in your second example you should get that stimulus money, presumably as soon as you file the 2019 return (due by July). If I thought I was eligible but delayed filing the return, as soon as I filed it I'd certainly try to see if I could get it.

2018 income (as filed in 2019) is used to determine eligibility if/once it's filed. But ultimately the checks people are getting today are advances on their 2020 tax returns based upon a new one-time refundable tax credit. The question is, when you file in 2020, if your income in 2019 changed markedly, what happens. Is the refundable tax credit still based on your 2018 income (filed in 2019), or is it recalculated based on your 2019 income?

 

[SJHovey]

Re: Stimulus checks

2018 income (as filed in 2019) is used to determine eligibility if/once it's filed. But ultimately the checks people are getting today are advances on their 2020 tax returns based upon a new one-time refundable tax credit. The question is, when you file in 2020, if your income in 2019 changed markedly, what happens. Is the refundable tax credit still based on your 2018 income (filed in 2019), or is it recalculated based on your 2019 income?

Ok.

It seems to me it would have to be recalculated, but I guess we'll see (or, more accurately, I guess some of you will see).

 

[mookie1995]

Re: Stimulus checks

This is already 2020.

It will be “adjusted” when one files their 2020 tax return in 2021.

The payment this week is determined on ones 2018 or 2019 return that the irs has in its possession.

 

[unofan]

Re: Stimulus checks

Ok.

It seems to me it would have to be recalculated, but I guess we'll see (or, more accurately, I guess some of you will see).

And I'm off a year in everything I've been saying, so that's not helping me be clear. Add a year to everything I've typed.

(eligibility is based on 2019 income as filed in 2020 - but it's an advance on 2021 taxes, so what happens if 2020 income is markedly different)

 

[unofan]

Re: Stimulus checks

This is already 2020.

You sure? Feels like the last month has lasted multiple years.

 

[SJHovey]

Re: Stimulus checks

You sure? Feels like the last month has lasted multiple years.

A buddy just called me and we were talking about how we cancelled our trip to Las Vegas for March Madness on March 12 and we both agreed it seemed like that occurred five years ago.

 

[mookie1995]

Re: Stimulus checks

You sure? Feels like the last month has lasted multiple years.

 

[WisconsinWildcard]

Re: Stimulus checks

All of the dates have got confusing and this may have been answered...but...

I got the 2400 for my wife and I today. 2019 taxes already filed, AGI under 150K.

2020 AGI will likely be over 150K. I assume I will have to pay some of this back? Not that it is a huge deal (as others have said, I will take the higher salary).

 

[RENCEB]

Re: Stimulus checks

"According to information that we have on file, we cannot determine your eligibility for a payment at this time." is the answer I get. I've gotten that multiple times.

I'm not sure if that means that the site has failed or if there is something up with my info. That's what I'm trying to determine.

Like I've said, I paid in 2017 & 2018. Haven't filed for 2019 because I will owe and wasn't sure how this will play out. Figured I would use the extension until July.

Same situation. I like having the money throughout the year, so I end up paying a small amount when I submit. Thought the IRS would have the bank info based on this, so thanks for clarifying that they don't. Very irritating that I now know they don't have the info, and every time I try to PROVIDE the info, they cannot determine my eligibility for payment at this time.

 

[Kepler]

Re: Stimulus checks

I'm actually impressed my family hasn't teetered over that cliff yet. My mother has always been good about being cautious thanks to her security clearances from her former employer, but I've noticed a slight drop in her awareness to these things since her retirement.

If they were ever trained in security awareness I would not worry. But trying explaining INFOSEC and OPSEC to a 90-year old who's sole experience with computers is her engineer husband refused to use them for online banking because reasons.

The only thing that has saved my Mom is she has such abject terror of computers she never goes near one. This is definitely just as well.

 

[Kepler]

Re: Stimulus checks

"According to information that we have on file, we cannot determine your eligibility for a payment at this time." is the answer I get. I've gotten that multiple times.

My daughter had the same issue. I told her to wait a week and try again. I am sure the system is buggy as hell.

 

[RaceBoarder]

Re: Stimulus checks

Same situation. I like having the money throughout the year, so I end up paying a small amount when I submit. Thought the IRS would have the bank info based on this, so thanks for clarifying that they don't. Very irritating that I now know they don't have the info, and every time I try to PROVIDE the info, they cannot determine my eligibility for payment at this time.

Yep. Same deal for me. I've been paying $200-300 each year. I'd rather be doing that than getting $1000+ back each April. There have been numerous times where I've needed each and every penny of that. I'm content with that. More or less if I could simply manipulate things to come out to $0, I'd do it in a heartbeat.

My daughter had the same issue. I told her to wait a week and try again. I am sure the system is buggy as hell.

Who knows at this point? Worst comes to worst, it does appear that everyone will get a letter within the next two weeks stating what they should have gotten. I figure if the webpage doesn't work itself out by then, the snail mail receipt should provide some guidance. But then again I don't exactly have tremendous confidence in this government making things right...

 

[dxmnkd316]

Re: Stimulus checks

So fun times, wife and I do married filing separately due to her student loans (she'll hit the 10 years for PSLF in February 2021). Which has always been a bit of an adventure for taxes cause no software handles that situation well. I end up doing my state return by hand (well, using the fillable PDFs provided by the state, but they have to be mailed in rather than e-filed).

This year, TurboTax farked us by having me list my daughter as a dependent even though my wife is claiming her for tax purposes and I wasn't claiming the child tax credit. Because I filed first and had her listed on the return, my wife's return was rejected and we had to mail hers in. I also had to mail in an amended return. This was all done back in the first week of March.

Went to enter our bank information for the coronavirus payments, mine sailed through but the IRS won't let us enter hers because they can't verify whether she's eligible or not.

I'm going to guess this also means that because they've received but haven't processed my amended return, my check is going to wind up being too high (because I'll get the $500 for the dependent even though I shouldn't) and we'll have to deal with that as well.

Thanks for the heads up on student loans and MFS. I was already looking into that for next year’s taxes. Probably going to give it much more thought.

Anything else we should look out for in filing separately?

 

[dxmnkd316]

Re: Stimulus checks

This thread has also convinced me that means testing anything from the government is a ****ing waste of time and money.

 

[Kepler]

Re: Stimulus checks

This thread has also convinced me that means testing anything from the government is a ****ing waste of time and money.

Means testing seems like a great idea on the surface but it's a trap, increasing costs, decreasing efficiency, and making programs burdensome.

Best to just cut everybody a tax-free check, then claw it back with higher top marginal rates.

Give Bezos his $2k a month. Tax him $20M more a month.

I used to believe in means testing because it seems so intuitively obvious. But it is a snare.

 

[e.cat]

So fun times, wife and I do married filing separately due to her student loans (she'll hit the 10 years for PSLF in February 2021). Which has always been a bit of an adventure for taxes cause no software handles that situation well. I end up doing my state return by hand (well, using the fillable PDFs provided by the state, but they have to be mailed in rather than e-filed).

This year, TurboTax farked us by having me list my daughter as a dependent even though my wife is claiming her for tax purposes and I wasn't claiming the child tax credit. Because I filed first and had her listed on the return, my wife's return was rejected and we had to mail hers in. I also had to mail in an amended return. This was all done back in the first week of March.

Went to enter our bank information for the coronavirus payments, mine sailed through but the IRS won't let us enter hers because they can't verify whether she's eligible or not.

I'm going to guess this also means that because they've received but haven't processed my amended return, my check is going to wind up being too high (because I'll get the $500 for the dependent even though I shouldn't) and we'll have to deal with that as well.

You should consider filing MFJ for your 2020 return uno and file the form 8379 form for injured spouse allocation. The stimulus checks are a refundable advance tax credit on your 2020 return. You'll get a larger standard deduction for MFJ and the IRS won't claw back the $500 for your daughter.