[CARES Act] Overview

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SailorJack02
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[CARES Act] Overview

Post by SailorJack02 » Thu Mar 26, 2020 1:21 pm

[See below -- moderator oldcomputerguy]


Here are some high levels points from the Senate passed CARE Act.

2020 Recovery Rebates for Individuals

All US residents with Adjusted Gross Income (AGI) up to $75,000 ($150,000 married filing joint) are eligible for a full stimulus payment of $1,200 ($2,400 for joint filers).
Recipients cannot be a dependent of another taxpayer or a non-resident alien.
Qualified taxpayers will receive an additional $500 per child.
There is a phase-out to AGI of $198,000 for joint returns, who will receive a reduced stimulus payment.
Will be based on 2019 return or, if not filed, 2018. Non-filers such as certain Social Security or Disability recipients are also eligible.
Taxpayers do not need to apply. They will receive a rebate check.

Special Rules for Use of Retirement Funds

The 10% early withdrawal penalty is waived for up to $100,000 of distributions from retirement plans for coronavirus related purposes made on or after January 1, 2020. Coronavirus related distributions are distributions made to an individual:
• Who is diagnosed with COVID-19;
• Whose spouse or dependent is diagnosed with COVID-19; or,
• Who experiences adverse financial conditions as a result of:

• Being quarantined, furloughed, or laid off;
• Having work hours reduced;
• Being unable to work due to lack of child care due to COVID-19;
• Closing or reducing hours of a business owned or operated by the individual due to the virus; or
• Other factors determined by Treasury.

The amount withdrawn may either be repaid over a three year period or included in taxable income with the recognition spread over three taxable years.

Temporary Waiver of Required Minimum Distribution Rules

The required minimum distribution rules for certain defined benefit plans and IRAs are waived for the calendar year 2020.
Applies to taxpayers who are required to take a distribution from their accounts during the economic slowdown caused by COVID-19.

Modification of Limitations on Charitable Contributions During 2020:

Individuals: The 50% AGI limitation for individuals will be suspended for 2020. This allows for an unlimited charitable contribution deduction in 2020.
For corporations: the 10% limitation is increased to 25% of taxable income allowing for a larger charitable contribution deduction.

Paycheck Protection Program

Small businesses with 500 or fewer employees during the “covered period” – February 15 through June 30, 2020 are eligible. Some industries may qualify with more employees, depending on the Small Business Administration’s applicable industry size standards, accessible here.
Offers a loan of up to $10 million based on a formula, which is essentially 2 ½ times the monthly payroll, plus certain other costs, up to $100,000 per employee.
Employee count is calculated per location for businesses in the hospitality and restaurant industries and certain others.
No personal guarantees are required.
Also available for self-employed individuals.
Loan may be used for salaries, paid sick or medical leave, insurance premiums, and mortgage rent and utility payments.
Loans will be made through eligible FDIC lenders.
Loans will be forgiven if employment and wage levels are maintained. There is a cure period for reductions that occurs between February 15, 2020 and 30 days after date of enactment as long as released employees are rehired or salary reductions are reversed by June 30, 2020.
Loan forgiveness is not taxable.

Employee Retention Credit for Employers Subject to Closure Due to COVID-19

The bill provides a refundable payroll tax credit equal to 50% of wages paid by employers to employees during the COVID-19 crisis.
Eligible employers are those:
• Whose operations were fully or partially suspended due to COVID-19 related shutdown orders, or
• Who had gross receipts decline by more than 50% as compared to the same quarter in the prior year.
• Qualifying based on credit amount and qualified wages criteria:

• For employers with more than 100 employees, qualified wages are wages paid to employees not providing services due to the COVID-19 related circumstances.
• For employers with 100 employees or less, all wages qualify for the credit.
• The credit is provided for first $10,000 of compensation, including health benefits.

• Credit applies to wages paid between March 13, 2020 and December 31, 2020.

Delay of Payment – Employer Payroll Tax:

Applies to employers and self-employed individuals.
Effective for payments as of the date of enactment of the legislation. Date of enactment is when the President signs the bill.
Defers the payment of the 6.2% employer portion of Social Security Tax for two years.
Half will be due December 31, 2021 with the other half due December 31, 2022.

Modification of Net Operating Losses (NOL) and Excess Business Loss Limitation

5 year carryback period for NOLS for the 2018, 2019, and 2020 tax years.
The provision also temporarily removes the 80% taxable limitation for net operating losses.
The excess business loss limitation for pass-through businesses and sole proprietors is suspended.

Modification of Limitation on Business Interest

The amount of interest expense businesses are allowed to deduct on their tax returns is increased, from 30% to 50% of taxable income (with adjustments) for 2019 and 2020.
The 2019 Adjusted Taxable Income may be used for the 2020 calculation, if more beneficial.

Technical Amendment Regarding Qualified Improvement Property

The act corrects the error in the 2017 tax reform with respect to qualified improvement property.
The depreciable life is changed from 39 years to 15 years retroactive to the beginning of 2018.
Taxpayers will now also be able to take bonus depreciation on qualified improvement property.
No guidance yet on whether amended returns will be required.

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SailorJack02
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Re: CARE Act Overview

Post by SailorJack02 » Thu Mar 26, 2020 1:22 pm

Re: Special Rules for Use of Retirement Funds

I wonder if there is a strategy to use the $100K exemption from IRA 10% penalty to help get money out of IRAs, for those considering early retirement.

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Re: CARE Act Overview

Post by oldcomputerguy » Thu Mar 26, 2020 1:29 pm

This topic has been locked. Forum policy prohibits discussion of proposed legislation.

Please refrain from starting threads about any stimulus legislation until such legislation has been signed into law by the President. Until that happens, we do not know the final form of the law and what it will and will not include.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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President Trump Signs Coronavirus Economic Relief Bill

Post by J G Bankerton » Fri Mar 27, 2020 3:19 pm

[Thread merged into here, see below. --admin LadyGeek]

The check is in the mail.
Last edited by J G Bankerton on Fri Mar 27, 2020 4:40 pm, edited 1 time in total.

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WoodSpinner
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Re: Trump signs $8.3 billion coronavirus package

Post by WoodSpinner » Fri Mar 27, 2020 3:21 pm

Is this a different package than the 2 Trillion one being discussed?

Do you have a link to the details?

Thanks

WoodSpinner

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MortgageOnBlack
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Re: Trump signs $8.3 billion coronavirus package

Post by MortgageOnBlack » Fri Mar 27, 2020 3:23 pm

What I'm curious on... is it a loan that we repay next year? How does it work?
If we've been fortunate to hang onto our job, is there any incentive to ripping it up? Personally, I wouldn't feel right cashing it if I don't need it.

columbia
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Re: Trump signs $8.3 billion coronavirus package

Post by columbia » Fri Mar 27, 2020 3:25 pm

This wax already priced in? ;)
If you leave your head in the sand for too long, you might get run over by a Jeep.

the way
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Re: Trump signs $8.3 billion coronavirus package

Post by the way » Fri Mar 27, 2020 3:26 pm

J G Bankerton wrote:
Fri Mar 27, 2020 3:19 pm
Old news. 8.3b was phase I. We're up to phase III already which is 250x bigger.

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CARES Act [Stimulus bill]- text (and analysis) of bill

Post by Stinky » Fri Mar 27, 2020 3:40 pm

[Thread merged into here, see below. --admin LadyGeek]

Here's a link to the COVID-19 relief bill, called the CARES Act. From the congress.gov website.

Let the reading (and discussion) begin!

https://www.congress.gov/bill/116th-con ... /3548/text
Last edited by Stinky on Fri Mar 27, 2020 4:00 pm, edited 3 times in total.
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Re: CARES Act - text of bill

Post by JD58 » Fri Mar 27, 2020 3:44 pm


Hyperchicken
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Re: CARES Act - text of bill

Post by Hyperchicken » Fri Mar 27, 2020 3:56 pm

Man, this is like reading source code of a large project, and with zero comments.

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Stinky
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Re: CARES Act - text of bill

Post by Stinky » Fri Mar 27, 2020 3:59 pm

Hyperchicken wrote:
Fri Mar 27, 2020 3:56 pm
Man, this is like reading source code of a large project, and with zero comments.
Yes - the Kitces article is a lot more understandable.

I trust that there will be multiple additional analyses posted over the next few days.
It's a GREAT day to be alive - Travis Tritt

denali98
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Re: CARES Act - text (and analysis) of bill

Post by denali98 » Fri Mar 27, 2020 4:03 pm

Hi, everybody:
Do I have this right about the Corona Rescue Package?
The rebate checks are a pre-payment of a tax credit “really given” for tax year 2020.
So, it is your 2020 AGI that qualifies you for this rebate.
The use of 2018 and 2019 AGI are just placeholders, allowing an estimate and early payment.
If your 2020 AGI is within the zone, even if your 2018/2019 AGI was too high, you will take your tax credit on your 2020 tax form.
Thank you for clarifying this for me.

I posted the above after both houses had passed the legislation, but I was still rightly locked for not waiting for the signing.
Before the lock, OnceARunner suggested that this perspective was the correct one.

Now it seems OK to post, and point out that this is still an actionable planning opportunity. For example, you could do a QCD to a Food Bank, reducing your AGI to qualify (below $150,000 joint filing). You could also open that 457 you have been meaning to, and get a significant free match if that brought you under the ceiling. There are still ways to qualify.

ShadowRegent
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Re: CARES Act - text (and analysis) of bill

Post by ShadowRegent » Fri Mar 27, 2020 4:05 pm

denali98 wrote:
Fri Mar 27, 2020 4:03 pm
Hi, everybody:
Do I have this right about the Corona Rescue Package?
The rebate checks are a pre-payment of a tax credit “really given” for tax year 2020.
So, it is your 2020 AGI that qualifies you for this rebate.
The use of 2018 and 2019 AGI are just placeholders, allowing an estimate and early payment.
If your 2020 AGI is within the zone, even if your 2018/2019 AGI was too high, you will take your tax credit on your 2020 tax form.
Thank you for clarifying this for me.

I posted the above after both houses had passed the legislation, but I was still rightly locked for not waiting for the signing.
Before the lock, OnceARunner suggested that this perspective was the correct one.

Now it seems OK to post, and point out that this is still an actionable planning opportunity. For example, you could do a QCD to a Food Bank, reducing your AGI to qualify (below $150,000 joint filing). You could also open that 457 you have been meaning to, and get a significant free match if that brought you under the ceiling. There are still ways to qualify.
One thing to note is that while you can get an additional credit on your 2020 return based on 2020 income, you will not need to repay any amount if you qualify for a smaller credit based on 2020 income.

Unfortunately, I lost a significant portion of the rebate by filing my 2019 taxes early as my 2018 income was lower than 2019 and 2020. That will teach me to file early.

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Re: CARES Act - text of bill

Post by hungryheart » Fri Mar 27, 2020 4:07 pm

Forgive if this is the wrong place to post, but I figure there will be lots of small business related questions about this bill, and my situation is probably similar to countless others on this forum.

I own a small restaurant/tavern along with my husband. We employee six people—five part time, one full time. As owners, we have paid benefits. We are an S Corp. Needless to say, the next few months will be very uncertain for our business. We've shifted to takeout only, and had to make the tough decision to temporarily layoff all but one of our employees.

A few of my questions...

Do all employees have to report back to work in order to qualify for the stimulus package that does not have to be paid back (payment for rent, utilities, insurance, payroll, etc). What if some employees have already applied for unemployment? What if the unemployment amount due to the additional $600 is more than they will get from their regular pay? Are there stipulations on what they can be assigned to do? (for example, painting, help with remodel efforts, cleaning, etc.)

Does this apply to S corps?

Does this apply to part-time employees?

I've done my best to read all relevant parts of the 888-page bill, but a few of these issues remain unclear to me. Thanks so much for any help you can offer, and I'll try to share my insight if I can offer any.

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Re: Trump signs $8.3 billion coronavirus package

Post by LadyGeek » Fri Mar 27, 2020 4:07 pm

The bill has been signed into law.

(This thread was previously removed for moderator review.)
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Re: CARES Act [Stimulus bill]- text (and analysis) of bill

Post by jeam3131 » Fri Mar 27, 2020 4:07 pm

Yup, got "penalized" for filing 2019 early

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Re: CARES Act [Stimulus bill]- text (and analysis) of bill

Post by Oicuryy » Fri Mar 27, 2020 4:08 pm

Stinky wrote:
Fri Mar 27, 2020 3:40 pm
Here's a link to the COVID-19 relief bill, called the CARES Act. From the congress.gov website.

Let the reading (and discussion) begin!

https://www.congress.gov/bill/116th-con ... /3548/text
I think this text is more recent.
https://www.congress.gov/bill/116th-con ... l/748/text

Ron
Money is fungible | Abbreviations and Acronyms

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LadyGeek
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Re: CARE Act Overview

Post by LadyGeek » Fri Mar 27, 2020 4:12 pm

The bill has been signed into law. This thread is reopened to continue the discussion.

This thread is now in the Investing - Theory, News & General forum (general discussion).
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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Re: Trump signs $8.3 billion coronavirus package

Post by timbukktoo » Fri Mar 27, 2020 4:12 pm

Any guesses on what this stimulus and the impacts of this pandemic are going to do to federal and state taxation rates in the future? :?

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SailorJack02
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Re: CARE Act Overview

Post by SailorJack02 » Fri Mar 27, 2020 4:16 pm

Thanks for reopening the thread.

I'm really curious to see what comes out about the $100K penalty-free withdrawal from IRAs. Not sure how that fits in my strategy.... :|

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Re: CARES Act - text (and analysis) of bill

Post by Alan S. » Fri Mar 27, 2020 4:17 pm

denali98 wrote:
Fri Mar 27, 2020 4:03 pm

Now it seems OK to post, and point out that this is still an actionable planning opportunity. For example, you could do a QCD to a Food Bank, reducing your AGI to qualify (below $150,000 joint filing). You could also open that 457 you have been meaning to, and get a significant free match if that brought you under the ceiling. There are still ways to qualify.
A QCD will not reduce your AGI for 2020. But it can be done without increasing your AGI. When RMDs resume in 2021, a QCD WILL reduce your AGI since it will reduce the taxable amount of your RMD. Accordingly, consider deferring the QCD to 2021.

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Re: CARES Act [Stimulus bill]- text (and analysis) of bill

Post by Seasonal » Fri Mar 27, 2020 4:18 pm

The $1,200 checks appear to be based on AGI rather than MAGI as used in the Medicare IRMAA context. In other words, muni income doesn't count.

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Re: Trump signs $8.3 billion coronavirus package

Post by lgs88 » Fri Mar 27, 2020 4:19 pm

MortgageOnBlack wrote:
Fri Mar 27, 2020 3:23 pm
What I'm curious on... is it a loan that we repay next year? How does it work?
If we've been fortunate to hang onto our job, is there any incentive to ripping it up? Personally, I wouldn't feel right cashing it if I don't need it.
MortgageOnBlack,

The $1200 checks are targeted at ALL Americans who had an income of up to $99,000 in 2018, not just those who have lost their jobs. For those who've lost their jobs, they've also expanded the scale of unemployment insurance.

I am in a similar position of not really needing it, but I wouldn't rip it up either. The purpose of the check is, as I understand it, is

a. to prevent financial calamity for folks living paycheck-to-paycheck (think foreclosure/eviction/inability to pay car note) OR
b. to prevent a collapse in aggregate demand.

Now, point A may not apply to you, but point B applies to everyone. If you have no pressing expenses, you might consider giving it to a relief organization.

lgs88

EDIT: By the by, the $8.3 billion package was a few weeks ago. This package is $2 trillion -- roughly 250x $8.3 billion.
merely an interested amateur

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Re: Trump signs $8.3 billion coronavirus package

Post by JD2775 » Fri Mar 27, 2020 4:29 pm

Does anyone know if the $99,000 is gross? Or is this your wages after 401k, HSA deductions?

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J G Bankerton
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Re: Trump signs $8.3 billion coronavirus package

Post by J G Bankerton » Fri Mar 27, 2020 4:31 pm

JD2775 wrote:
Fri Mar 27, 2020 4:29 pm
Does anyone know if the $99,000 is gross? Or is this your wages after 401k, HSA deductions?
AGI
the way wrote:
Fri Mar 27, 2020 3:26 pm
J G Bankerton wrote:
Fri Mar 27, 2020 3:19 pm
Old news. 8.3b was phase I. We're up to phase III already which is 250x bigger.
It was speculation until 4 PM EDT when it was signed. I'm going to buy VOO with my $1,200.
This goes to every adult who filed taxes and makes less than $99,000. $500 for each child.

OMG, you are correct, that was signed and is the emergency bill. :oops:

President Trump Signs Coronavirus Economic Relief Bill
https://www.c-span.org/video/?470779-1/ ... elief-bill

Retired2013
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Re: CARE Act Overview

Post by Retired2013 » Fri Mar 27, 2020 4:37 pm

SailorJack02 wrote:
Thu Mar 26, 2020 1:21 pm
[See below -- moderator oldcomputerguy]


Here are some high levels points from the Senate passed CARE Act.

2020 Recovery Rebates for Individuals

All US residents with Adjusted Gross Income (AGI) up to $75,000 ($150,000 married filing joint) are eligible for a full stimulus payment of $1,200 ($2,400 for joint filers).
Recipients cannot be a dependent of another taxpayer or a non-resident alien.
Qualified taxpayers will receive an additional $500 per child.
There is a phase-out to AGI of $198,000 for joint returns, who will receive a reduced stimulus payment.
Will be based on 2019 return or, if not filed, 2018. Non-filers such as certain Social Security or Disability recipients are also eligible.
Taxpayers do not need to apply. They will receive a rebate check.
I read another article that said you must file a tax return. Reading the CARE act, it looks like they are giving you a refundable credit on your 2018 or 2019 tax return. My MIL doesn't file a tax return since she only received SS and a very small pension. I guess she'll need to do one to get her $1,200 which would go a long way for her.

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Re: CARE Act Overview

Post by willthrill81 » Fri Mar 27, 2020 4:47 pm

SailorJack02 wrote:
Fri Mar 27, 2020 4:16 pm
Thanks for reopening the thread.

I'm really curious to see what comes out about the $100K penalty-free withdrawal from IRAs. Not sure how that fits in my strategy.... :|
Removing the penalty for early withdrawals isn't a bad move at all, but those with enough IRA funds to really help them out now seem likely to me to also be those who are least likely to need those funds.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: CARE Act Overview

Post by willthrill81 » Fri Mar 27, 2020 4:48 pm

Retired2013 wrote:
Fri Mar 27, 2020 4:37 pm
SailorJack02 wrote:
Thu Mar 26, 2020 1:21 pm
[See below -- moderator oldcomputerguy]


Here are some high levels points from the Senate passed CARE Act.

2020 Recovery Rebates for Individuals

All US residents with Adjusted Gross Income (AGI) up to $75,000 ($150,000 married filing joint) are eligible for a full stimulus payment of $1,200 ($2,400 for joint filers).
Recipients cannot be a dependent of another taxpayer or a non-resident alien.
Qualified taxpayers will receive an additional $500 per child.
There is a phase-out to AGI of $198,000 for joint returns, who will receive a reduced stimulus payment.
Will be based on 2019 return or, if not filed, 2018. Non-filers such as certain Social Security or Disability recipients are also eligible.
Taxpayers do not need to apply. They will receive a rebate check.
I read another article that said you must file a tax return. Reading the CARE act, it looks like they are giving you a refundable credit on your 2018 or 2019 tax return. My MIL doesn't file a tax return since she only received SS and a very small pension. I guess she'll need to do one to get her $1,200 which would go a long way for her.
Same for my MiL as well. I'll tell her to be sure to file a 2019 return for this purpose.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by F150HD » Fri Mar 27, 2020 4:51 pm

does one have to have earned income to get the $1200? meaning, for people already on some form of economic/public assistance and have no job to lose like the rest of us, would that still qualify?

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by tigers174 » Fri Mar 27, 2020 4:54 pm

F150HD wrote:
Fri Mar 27, 2020 4:51 pm
does one have to have earned income to get the $1200? meaning, for people already on some form of economic/public assistance and have no job to lose like the rest of us, would that still qualify?
Would most people who are receiving Social Security retirement and disability payments each month also get a stimulus payment?

Yes.

Would eligible unemployed people get these stimulus payments? Veterans?

Yes and yes.

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F150HD
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by F150HD » Fri Mar 27, 2020 4:55 pm

ran across this earlier today....don't know its accuracy, nonetheless....

Stimulus Check Calculator

https://www.omnicalculator.com/finance/stimulus-payment

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F150HD
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by F150HD » Fri Mar 27, 2020 5:00 pm

tigers174 wrote:
Fri Mar 27, 2020 4:54 pm
Would most people who are receiving Social Security retirement and disability payments each month also get a stimulus payment?

Yes.

Would eligible unemployed people get these stimulus payments? Veterans?

Yes and yes.
Thanks. what about people who are incarcerated? (seriously, it just came to mind)

Also, does this count as 'income' meaning, you'll have to claim it on your taxes this year? or is it tax exempt?
Last edited by F150HD on Fri Mar 27, 2020 5:05 pm, edited 1 time in total.

retiringwhen
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by retiringwhen » Fri Mar 27, 2020 5:01 pm

My son who is not eligible for unemployment, got a job today no problem, nobody else looking it seems.

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J G Bankerton
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by J G Bankerton » Fri Mar 27, 2020 5:08 pm

F150HD wrote:
Fri Mar 27, 2020 5:00 pm
tigers174 wrote:
Fri Mar 27, 2020 4:54 pm
Would most people who are receiving Social Security retirement and disability payments each month also get a stimulus payment?

Yes.

Would eligible unemployed people get these stimulus payments? Veterans?

Yes and yes.
Thanks. what about people who are incarcerated? (seriously, it just came to mind)

Also, does this count as 'income' meaning, you'll have to claim it on your taxes this year? or is it tax exempt?
I know if one is in jail they no longer get Social Security or Veterans disability payments. Thank you for your service.

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by ram » Fri Mar 27, 2020 5:10 pm

What is the status of somebody who makes 50K in 2018 and 100 K in 2020.

I read somewhere that they will have to return the money when they file taxes by 4.15.2021.

What is the status for somebody who made $0 in 2018 and did not file a tax return and made <75 K in 2019 and has filed taxes by now.
Last edited by ram on Fri Mar 27, 2020 5:11 pm, edited 1 time in total.
Ram

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by grog » Fri Mar 27, 2020 5:34 pm

Sweet, can't wait for my Trumpbux 8-)

It looks like they are going to use 2018 AGI or 2019 if that has already been filed. I have filed 2019 and already got my refund and my AGI was higher that year, so I would be getting about $350 more if I'd procrastinated on my taxes. No virtue goes unpunished! On the bright side though, if I didn't max my 401K and HSA like a good Boglehead I wouldn't be getting anything at all.

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by Phineas J. Whoopee » Fri Mar 27, 2020 5:46 pm

The bill enacted a 2020 tax-year credit, to be claimed on one's 2020 tax return, which will be submitted in 2021. The plan is to pre-pay it.
PJW

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by stocknoob4111 » Fri Mar 27, 2020 5:49 pm

J G Bankerton wrote:
Fri Mar 27, 2020 3:19 pm
The check is in the mail.
what check? I don't get anything.

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J G Bankerton
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by J G Bankerton » Fri Mar 27, 2020 6:30 pm

stocknoob4111 wrote:
Fri Mar 27, 2020 5:49 pm
J G Bankerton wrote:
Fri Mar 27, 2020 3:19 pm
The check is in the mail.
what check? I don't get anything.
That's because it is in the mail. :mrgreen:

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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by tarnation » Fri Mar 27, 2020 6:41 pm

So whats the deal on the 100K, You have three years to pay it back and if you don't you have three years to pay the tax?? text of law FYI
https://www.congress.gov/bill/116th-con ... B4B770C2F2
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lazyday
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Re: CARE Act Overview

Post by lazyday » Fri Mar 27, 2020 7:03 pm

Retired2013 wrote:
Fri Mar 27, 2020 4:37 pm
Reading the CARE act, it looks like they are giving you a refundable credit on your 2018 or 2019 tax return.
Sounds like the $1200 might not be taxable income, and might not increase ACA MAGI for 2020?

gch
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Re: CARE Act Overview

Post by gch » Fri Mar 27, 2020 7:06 pm

Has anybody seen anywhere on if children born in 2019 whose parents have not filed their 2019 taxes or 2020 births will qualify for the $500 credit?

TravelGeek
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Re: CARE Act Overview

Post by TravelGeek » Fri Mar 27, 2020 7:10 pm

It’s actually called the CARES Act. “Coronavirus Aid, Relief, and Economic Security Act” :)

https://www.congress.gov/bill/116th-con ... /3548/text

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MN-Investor
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Re: CARE Act Overview

Post by MN-Investor » Fri Mar 27, 2020 7:18 pm

I'm curious as to what I'll get as a refund.

My husband passed away in 2018 and I filed a joint return, indicating that my husband had died during the year. Our AGI was < $150,000.

For 2019 I'll be filing a single return. I have yet to file it.

So the refund will be based on my 2018 return. I imagine that I'll get $1,200, but I wonder if I might end up getting $2,400 since it was a joint return. It will be interesting to see.
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J G Bankerton
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by J G Bankerton » Fri Mar 27, 2020 7:19 pm

tarnation wrote:
Fri Mar 27, 2020 6:41 pm
So whats the deal on the 100K, You have three years to pay it back and if you don't you have three years to pay the tax?? text of law FYI
https://www.congress.gov/bill/116th-con ... B4B770C2F2
That is if one takes distributions form; 26 USC 72: Annuities; certain proceeds of endowment and life insurance contracts.

Stormbringer
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Re: CARE Act Overview

Post by Stormbringer » Fri Mar 27, 2020 7:38 pm

This law also retroactively fixes the "retail glitch" that affected the ability of small businesses to expense remodeling costs.
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arcticpineapplecorp.
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Re: CARES Act [Stimulus bill]- text (and analysis) of bill

Post by arcticpineapplecorp. » Fri Mar 27, 2020 7:48 pm

Oicuryy wrote:
Fri Mar 27, 2020 4:08 pm
Stinky wrote:
Fri Mar 27, 2020 3:40 pm
Here's a link to the COVID-19 relief bill, called the CARES Act. From the congress.gov website.

Let the reading (and discussion) begin!

https://www.congress.gov/bill/116th-con ... /3548/text
I think this text is more recent.
https://www.congress.gov/bill/116th-con ... l/748/text

Ron
so in the most recent version (the house, passed) I don't see an answer to the following question at the section regarding "recovery rebates" (https://www.congress.gov/bill/116th-con ... FB60C16963):

I know someone who isn't working and hasn't for the past several years. He is supported by his father (who claimed him as a dependent and got head of household deduction on his tax return the last few years).

Is the son who's not working not eligible for any $1200 payment because he hasn't filed a tax return for 2018 or 2019 and income for this year is uncertain (more described below)?

An article I saw days ago said people in this situation in 2008 needed to file a return showing $1 in income to get their 2008 stimulus payment.

Is anything like that required/possible to get a rebate payment this year? If it helps, he has a movie script which he was hoping to get paid for this year (when preproduction starts), though that might not be until 2021 now, so he may or may not have income to report this year, unknown.

thoughts?
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stocknoob4111
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by stocknoob4111 » Fri Mar 27, 2020 7:59 pm

MoneyMarathon wrote:
Fri Mar 27, 2020 6:03 pm
Stock investors do get a reach-around that buoys the stock market by boosting corporate earnings with consumer spending.
Thanks, i'll believe it when I see it, I invested a large lumpsum in January 2018 so at this moment i've lost tens of thousands of my own money after reversing all the gains I made from the market. If I am lucky I may break even in about 10 years. And now I may be losing my job as well because the company I work for is suddenly going into a zero dollar revenue situation (this company has about $100 million in revenues so you can see that this is a shock that is unpredecented!) which has not happened in the history of the world.
Last edited by stocknoob4111 on Fri Mar 27, 2020 8:02 pm, edited 1 time in total.

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tarnation
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Re: President Trump Signs Coronavirus Economic Relief Bill

Post by tarnation » Fri Mar 27, 2020 8:01 pm

J G Bankerton wrote:
Fri Mar 27, 2020 7:19 pm
tarnation wrote:
Fri Mar 27, 2020 6:41 pm
So whats the deal on the 100K, You have three years to pay it back and if you don't you have three years to pay the tax?? text of law FYI
https://www.congress.gov/bill/116th-con ... B4B770C2F2
That is if one takes distributions form; 26 USC 72: Annuities; certain proceeds of endowment and life insurance contracts.
looks like a maybe a chance to get $100k from 401(k) to IRA.
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