COVID-19 Stimulus Payment Issue

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Paradise
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Re: COVID-19 Stimulus Payment Issue

Post by Paradise »

trueblueky wrote: Thu Apr 02, 2020 5:28 pm
Paradise wrote: Thu Apr 02, 2020 3:47 pm
Silk McCue wrote: Wed Apr 01, 2020 6:09 pm
Paradise wrote: Wed Apr 01, 2020 5:34 pm Not sure if it’s appropriate to hijack but also what about the opposite? We qualify for a check with 2019 income but not 2018 and also have an additional dependent. I immediately mail filed my taxes last week when I heard this was becoming a likely situation, but it seems like I’m not guaranteed they use my 2019 return depending on when they run the algorithm ? Any chance to appeal if they use 2018 by mistake?
File electronically now. I can’t fathom filing paper these days.

Cheers
I have never been able to electronically file due to some error in the system. Just curious what happens to me if they use 2018 returns. I can’t be the only person who has an extra child in 2019 or has less tax burden. Will they make up the difference once 2019 is processed? I don’t need the money right now but I’d hate to miss out on the cash.
They will make up the difference, if warranted, when you file your 2020 taxes next year.


Great to know. Thank you :beer
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rickwmm
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Re: COVID-19 Stimulus Payment Issue

Post by rickwmm »

trueblueky wrote: Thu Apr 02, 2020 5:28 pm
Paradise wrote: Thu Apr 02, 2020 3:47 pm
Silk McCue wrote: Wed Apr 01, 2020 6:09 pm
Paradise wrote: Wed Apr 01, 2020 5:34 pm Not sure if it’s appropriate to hijack but also what about the opposite? We qualify for a check with 2019 income but not 2018 and also have an additional dependent. I immediately mail filed my taxes last week when I heard this was becoming a likely situation, but it seems like I’m not guaranteed they use my 2019 return depending on when they run the algorithm ? Any chance to appeal if they use 2018 by mistake?
File electronically now. I can’t fathom filing paper these days.

Cheers
I have never been able to electronically file due to some error in the system. Just curious what happens to me if they use 2018 returns. I can’t be the only person who has an extra child in 2019 or has less tax burden. Will they make up the difference once 2019 is processed? I don’t need the money right now but I’d hate to miss out on the cash.
They will make up the difference, if warranted, when you file your 2020 taxes next year.
Hmm, I'm not so sure about this. I agree that people who don't qualify under either 2018 or 2019, but do qualify under 2020 income (because, for example, they lost their job in 2020 or had their pay significantly cut) will probably get some relief on their 2020 returns. But I'm really talking about the probably common case where someone qualifies under 2018 income but not under 2019 income. In this case, everything I've read says that the people who have not yet filed for 2019 will get a check, but the people who have already filed for 2019 will not. I haven't seen anything that suggests this inequity will be fixed on the 2020 return. The people who went ahead and filed for 2019 will likely not get a check because they don't qualify under the rules. The ones who last filed under 2018 will get their check, and I haven't seen anything that suggests they will have to pay any of their payment back on the 2020 return. Those taxpayers in this situation who for whatever reason chose not to file yet for 2019 basically won the lottery.
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cowdogman
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Re: COVID-19 Stimulus Payment Issue

Post by cowdogman »

rickwmm wrote: Wed Apr 01, 2020 4:32 pm I haven't seen this issue addressed anywhere. The rules state that if you have filed your 2019 federal return, you determine eligibility for a COVID-19 relief check based on 2019 income; otherwise, it's based on 2018 income. My son has a situation which I am sure must be fairly common. He qualifies for a payment based on his 2018 income but will not qualify based on his 2019 income. Fortunately, he hasn't filed yet for 2019, so I guess he will receive a check. But it creates what seems like a major inequity, as many people who filed early in 2019 will be deprived of a check but would have gotten one if they delayed filing.

It seems to me the only way this can be resolved fairly is to say that if you received a check based on 2018 income which you would not have deserved based on 2019 income, you will have to pay it back on your 2020 return. But no one is saying this, which strikes me as odd.

This doesn't even address the situation of 2020 income. Many people who didn't qualify based on 2018 or 2019 income may indeed qualify in 2020 due to COVID-19 related lost wages. I assume that will be taken care of on their 2020 return. But the reverse situation may also be true. Some people who qualified in 2018 and/or 2019 may suddenly not qualify in 2020 simply due to making more money in 2020. Again, I wonder if these people will have to pay back what they received on 2020 return.

Am I missing something here? Has this issue been addressed yet?
These is another thread that touches this issue.

My personal view having spent some time with the actual text of the legislation is that the 2020 credit will be determined based on 2020 income, filing status, etc. and determined in the 2020 tax return (in early 2021). The open question (not addressed in the legislation) is whether any payment of the "advance refund" based on a 2018 or 2019 return will be clawed back, in whole or in part, if and to the extent the filer doesn't qualify for the credit in his/her 2020 tax return.

Here is what the April 3, 2020 Kiplinger Tax Letter says on this issue:
On your 2020 return, you’ll reconcile your rebate. For most, the rebate
will equal the tax credit allowed. Taxpayers whose credits exceed their rebates
can claim the balance on their 2020 returns. Although we don’t yet know for certain,
we expect you won’t have to repay IRS if the payment you got is more than your credit.
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One Ping
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Re: COVID-19 Stimulus Payment Issue

Post by One Ping »

Does anyone know if this stimulus payment will count as 2020 taxable income?

Might make a difference in tax planning for someone whose "dancing" with the IRMAA or ACA income limits.

One Ping
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

One Ping wrote: Sat Apr 04, 2020 8:43 pm Does anyone know if this stimulus payment will count as 2020 taxable income?

Might make a difference in tax planning for someone whose "dancing" with the IRMAA or ACA income limits.

One Ping
It will not. It is an advance refund, not income.
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One Ping
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Re: COVID-19 Stimulus Payment Issue

Post by One Ping »

nps wrote: Sat Apr 04, 2020 8:57 pm
One Ping wrote: Sat Apr 04, 2020 8:43 pm Does anyone know if this stimulus payment will count as 2020 taxable income?

Might make a difference in tax planning for someone whose "dancing" with the IRMAA or ACA income limits.

One Ping
It will not. It is an advance refund, not income.
Refund against what? 2019 taxes owed? 2020 taxes owed? If you have a refund coming anyway, is that refund reduced by the amount of your previuosly received stimulus check? If you owe money, is your tax increased by the amount of your previously received stimumlus check?
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

One Ping wrote: Sat Apr 04, 2020 9:11 pm
nps wrote: Sat Apr 04, 2020 8:57 pm
One Ping wrote: Sat Apr 04, 2020 8:43 pm Does anyone know if this stimulus payment will count as 2020 taxable income?

Might make a difference in tax planning for someone whose "dancing" with the IRMAA or ACA income limits.

One Ping
It will not. It is an advance refund, not income.
Refund against what? 2019 taxes owed? 2020 taxes owed? If you have a refund coming anyway, is that refund reduced by the amount of your previuosly received stimulus check? If you owe money, is your tax increased by the amount of your previously received stimumlus check?
It is treated as an advance of the refundable credit to be issued in tax year 2020. It does not affect refunds or amounts owed for tax years 2019 or 2018.
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One Ping
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Re: COVID-19 Stimulus Payment Issue

Post by One Ping »

nps wrote: Sat Apr 04, 2020 9:24 pm
One Ping wrote: Sat Apr 04, 2020 9:11 pm
nps wrote: Sat Apr 04, 2020 8:57 pm
One Ping wrote: Sat Apr 04, 2020 8:43 pm Does anyone know if this stimulus payment will count as 2020 taxable income?

Might make a difference in tax planning for someone whose "dancing" with the IRMAA or ACA income limits.

One Ping
It will not. It is an advance refund, not income.
Refund against what? 2019 taxes owed? 2020 taxes owed? If you have a refund coming anyway, is that refund reduced by the amount of your previuosly received stimulus check? If you owe money, is your tax increased by the amount of your previously received stimumlus check?
It is treated as an advance of the refundable credit to be issued in tax year 2020. It does not affect refunds or amounts owed for tax years 2019 or 2018.
Ah, thank you, nps.
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

cowdogman wrote: Sat Apr 04, 2020 7:31 pm
rickwmm wrote: Wed Apr 01, 2020 4:32 pm Some people who qualified in 2018 and/or 2019 may suddenly not qualify in 2020 simply due to making more money in 2020. Again, I wonder if these people will have to pay back what they received on 2020 return.

Am I missing something here? Has this issue been addressed yet?
These is another thread that touches this issue.

My personal view having spent some time with the actual text of the legislation is that the 2020 credit will be determined based on 2020 income, filing status, etc. and determined in the 2020 tax return (in early 2021). The open question (not addressed in the legislation) is whether any payment of the "advance refund" based on a 2018 or 2019 return will be clawed back, in whole or in part, if and to the extent the filer doesn't qualify for the credit in his/her 2020 tax return.

Here is what the April 3, 2020 Kiplinger Tax Letter says on this issue:
On your 2020 return, you’ll reconcile your rebate. For most, the rebate
will equal the tax credit allowed. Taxpayers whose credits exceed their rebates
can claim the balance on their 2020 returns. Although we don’t yet know for certain,
we expect you won’t have to repay IRS if the payment you got is more than your credit.
The Senate committee that wrote the legislation has confirmed it doesn't need to be paid back. I would consider them to be a more accurate source of information.

"Is the rebate taxable or will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax year return?

No, the rebate is treated like other refundable tax credits, such as the child tax credit and earned income tax credit, and not considered income. Moreover, if the credit amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back."


https://www.finance.senate.gov/chairman ... checks-faq
SimonJester
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Re: COVID-19 Stimulus Payment Issue

Post by SimonJester »

nps wrote: Sat Apr 04, 2020 9:38 pm
cowdogman wrote: Sat Apr 04, 2020 7:31 pm
rickwmm wrote: Wed Apr 01, 2020 4:32 pm Some people who qualified in 2018 and/or 2019 may suddenly not qualify in 2020 simply due to making more money in 2020. Again, I wonder if these people will have to pay back what they received on 2020 return.

Am I missing something here? Has this issue been addressed yet?
These is another thread that touches this issue.

My personal view having spent some time with the actual text of the legislation is that the 2020 credit will be determined based on 2020 income, filing status, etc. and determined in the 2020 tax return (in early 2021). The open question (not addressed in the legislation) is whether any payment of the "advance refund" based on a 2018 or 2019 return will be clawed back, in whole or in part, if and to the extent the filer doesn't qualify for the credit in his/her 2020 tax return.

Here is what the April 3, 2020 Kiplinger Tax Letter says on this issue:
On your 2020 return, you’ll reconcile your rebate. For most, the rebate
will equal the tax credit allowed. Taxpayers whose credits exceed their rebates
can claim the balance on their 2020 returns. Although we don’t yet know for certain,
we expect you won’t have to repay IRS if the payment you got is more than your credit.
The Senate committee that wrote the legislation has confirmed it doesn't need to be paid back. I would consider them to be a more accurate source of information.

"Is the rebate taxable or will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax year return?

No, the rebate is treated like other refundable tax credits, such as the child tax credit and earned income tax credit, and not considered income. Moreover, if the credit amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back."


https://www.finance.senate.gov/chairman ... checks-faq

I would just be cautious, as we know congress can re write the tax rules at any time and make them retroactive.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

SimonJester wrote: Sun Apr 05, 2020 9:45 am
nps wrote: Sat Apr 04, 2020 9:38 pm The Senate committee that wrote the legislation has confirmed it doesn't need to be paid back. I would consider them to be a more accurate source of information.

"Is the rebate taxable or will I have to pay back any amount if the rebate based on my 2019 return is larger than what it would be if based on my 2020 tax year return?

No, the rebate is treated like other refundable tax credits, such as the child tax credit and earned income tax credit, and not considered income. Moreover, if the credit amount you qualify based on 2020 income is less than what you qualify for based on your 2019 tax return, it does not have to be paid back."


https://www.finance.senate.gov/chairman ... checks-faq

I would just be cautious, as we know congress can re write the tax rules at any time and make them retroactive.
They sure can. But as far as this law's concerned, I think the notion that it is open to interpretation is not a good one.
JGoneRiding
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Re: COVID-19 Stimulus Payment Issue

Post by JGoneRiding »

Katietsu wrote: Wed Apr 01, 2020 10:16 pm
rickwmm wrote: Wed Apr 01, 2020 10:10 pm My daughter also had a weird and complex scenario. She filed jointly with her husband in 2018 and claimed their son as dependent. In 2019 she got divorced and earlier this year she filed for 2019 as HOH, claiming her son as a dependent. But her ex-husband has most likely not filed yet. So her situation should be clear. Since she filed in 2019, she could cleanly get $1200 for herself and $500 for her son. But what about his situation? Since he hasn't filed for this year, it reverts back to 2018 which was a joint return. And to further complicate things, that return was filed using his checking account, to which she no longer has access. Will the government send him a $1200 payment, even though they can't separate out his income? Will they send him a joint payment of $2400 plus $500 for the child, with her unable to access her portion of the payment? This would mean she and her son would basically get two payments, with one set possibly going to the ex which she can't access. Or will her payment from her 2019 income not arrive because they processed a joint payment to her and her ex based on 2018 first?
Boy. That is a twist I had not thought about. I wonder if the Treasury has worked out all these scenarios yet. I would guess not. I do think your daughter should be OK because they are supposed to start with 2019 first. But I do not know if anyone really knows the answer yet.
I agree that the answer is not totally known but I do believe there is a plan to rectify this on 2020 taxes. Most likely she will get her payment fine and he will.be messed up.

The people that will most easily get refunds are those that filled same tax status electronically both years AND gave the government electronic info for a refund.

But what about people that OWED money so the government doesn't have a bank account? Most likely they will get a check eventually but who knows when.
JGoneRiding
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Re: COVID-19 Stimulus Payment Issue

Post by JGoneRiding »

Paradise wrote: Thu Apr 02, 2020 3:47 pm
Silk McCue wrote: Wed Apr 01, 2020 6:09 pm
Paradise wrote: Wed Apr 01, 2020 5:34 pm Not sure if it’s appropriate to hijack but also what about the opposite? We qualify for a check with 2019 income but not 2018 and also have an additional dependent. I immediately mail filed my taxes last week when I heard this was becoming a likely situation, but it seems like I’m not guaranteed they use my 2019 return depending on when they run the algorithm ? Any chance to appeal if they use 2018 by mistake?
File electronically now. I can’t fathom filing paper these days.

Cheers
I have never been able to electronically file due to some error in the system. Just curious what happens to me if they use 2018 returns. I can’t be the only person who has an extra child in 2019 or has less tax burden. Will they make up the difference once 2019 is processed? I don’t need the money right now but I’d hate to miss out on the cash.
I believe that they plan to account for all children born in 2020 prior to the cut off date (whatever that is I am guessing the 1st or 2nd of April) on third 2020 taxes. So you might not get money for a child born this year right now but you will later. Conversely if a child died you will get the money and because they decided it would look bad to have people have to pay any back you get to keep it.
JonnyB
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Re: COVID-19 Stimulus Payment Issue

Post by JonnyB »

JGoneRiding wrote: Sun Apr 05, 2020 12:16 pm But what about people that OWED money so the government doesn't have a bank account? Most likely they will get a check eventually but who knows when.
There are about 130 million households in the U.S. The Treasury Secretary said they will mail out 5 million checks a week. So you could be waiting a while.

There are about 60 million for whom the IRS has bank account information and they will probably get their rebates quickly.
JGoneRiding
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Re: COVID-19 Stimulus Payment Issue

Post by JGoneRiding »

JonnyB wrote: Sun Apr 05, 2020 12:31 pm
JGoneRiding wrote: Sun Apr 05, 2020 12:16 pm But what about people that OWED money so the government doesn't have a bank account? Most likely they will get a check eventually but who knows when.
There are about 130 million households in the U.S. The Treasury Secretary said they will mail out 5 million checks a week. So you could be waiting a while.

There are about 60 million for whom the IRS has bank account information and they will probably get their rebates quickly.
I am safely in the I got small refunds both years and the only thing that changed was another child. I have utter faith that we will get ours quickly plus or minus $500 that will be rectified on our 2020 taxes. Just thinking for the people that wrote checks.
mikeyzito22
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Re: COVID-19 Stimulus Payment Issue

Post by mikeyzito22 »

DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
Problem is, my spouse filed for Unemployment. Then she was denied for something she checked wrong. Now she's being told to call to fix it. We call, it's a busy signal from 8-5 EVERY DAY. So I hear you, but the whole system is broken and it will take the system to work again.
Katietsu
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Re: COVID-19 Stimulus Payment Issue

Post by Katietsu »

JGoneRiding wrote: Sun Apr 05, 2020 12:37 pm
JonnyB wrote: Sun Apr 05, 2020 12:31 pm
JGoneRiding wrote: Sun Apr 05, 2020 12:16 pm But what about people that OWED money so the government doesn't have a bank account? Most likely they will get a check eventually but who knows when.
There are about 130 million households in the U.S. The Treasury Secretary said they will mail out 5 million checks a week. So you could be waiting a while.

There are about 60 million for whom the IRS has bank account information and they will probably get their rebates quickly.
I am safely in the I got small refunds both years and the only thing that changed was another child. I have utter faith that we will get ours quickly plus or minus $500 that will be rectified on our 2020 taxes. Just thinking for the people that wrote checks.
There is supposed to be an online platform to enter direct deposit information available in a couple of weeks should someone wish to add that information.

Under the difficult circumstances, I am impressed with both the fairness and the plans for execution associated with these payments.
TropikThunder
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Re: COVID-19 Stimulus Payment Issue

Post by TropikThunder »

Katietsu wrote: Sun Apr 05, 2020 12:46 pm Under the difficult circumstances, I am impressed with both the fairness and the plans for execution associated with these payments.
Me too! I mean seriously people, the law was signed what 9 days ago? I’m seriously impressed by the steps taken and the process being put in place (still TBD how well those plans work I admit). Issues are being identified and resolved almost daily, which just doesn’t normally happen in Washington.
Colorado13
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Re: COVID-19 Stimulus Payment Issue

Post by Colorado13 »

I am actually stunned by how many posts this topic has raised (in this thread and others) among Bogleheads. With so many high net worth and/or high income posters on these boards, I don't understand how a thousand dollars matters. Not that it's chump change, but for many of you, it's a drop in the bucket isn't it?

For me, $1000 is definitely a tiny drop in the bucket relative to the investment losses (on paper) that I've incurred in the past month.
Dottie57
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Re: COVID-19 Stimulus Payment Issue

Post by Dottie57 »

DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I actually think this would have been better. As a retiree who had my money for the year set, I don’t need the money. I bet other retirees don’t need it either.
Silk McCue
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Re: COVID-19 Stimulus Payment Issue

Post by Silk McCue »

Colorado13 wrote: Wed Apr 08, 2020 8:33 am I am actually stunned by how many posts this topic has raised (in this thread and others) among Bogleheads. With so many high net worth and/or high income posters on these boards, I don't understand how a thousand dollars matters. Not that it's chump change, but for many of you, it's a drop in the bucket isn't it?

For me, $1000 is definitely a tiny drop in the bucket relative to the investment losses (on paper) that I've incurred in the past month.
The market losses aren't real unless you sell but $1200 cash is real all day long.

I think you underestimate the number of financially average Jane's and Joe's that are actively involved on this site.

Cheers
PVW
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Re: COVID-19 Stimulus Payment Issue

Post by PVW »

Dottie57 wrote: Wed Apr 08, 2020 8:59 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I actually think this would have been better. As a retiree who had my money for the year set, I don’t need the money. I bet other retirees don’t need it either.

Part of the goal of the stimulus bill was to pump cash into the economy. They couldn't accomplish this solely through unemployment benefits.

As it is now, some unemployment benefits are exceeding what workers were making when they were employed. This affects the labor pool - overpaying the unemployed is not fair to companies that need employees and it's not fair to low paid workers that remain employed.
Dottie57
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Re: COVID-19 Stimulus Payment Issue

Post by Dottie57 »

PVW wrote: Thu Apr 09, 2020 1:47 pm
Dottie57 wrote: Wed Apr 08, 2020 8:59 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I actually think this would have been better. As a retiree who had my money for the year set, I don’t need the money. I bet other retirees don’t need it either.

Part of the goal of the stimulus bill was to pump cash into the economy. They couldn't accomplish this solely through unemployment benefits.

As it is now, some unemployment benefits are exceeding what workers were making when they were employed. This affects the labor pool - overpaying the unemployed is not fair to companies that need employees and it's not fair to low paid workers that remain employed.
Every piece of legislation has inequities. I think a blanket check was not the best use of money.
megabad
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Re: COVID-19 Stimulus Payment Issue

Post by megabad »

Thanks for posting. First real source I’ve seen. Doesn’t answer everything but at least it is from the senate.
trueblueky
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Re: COVID-19 Stimulus Payment Issue

Post by trueblueky »

megabad wrote: Thu Apr 09, 2020 4:52 pm
Thanks for posting. First real source I’ve seen. Doesn’t answer everything but at least it is from the senate.
The $146,500 cap for head of household should be $148,500.

The cap given for a family of four seems to indicate a per child increase in the cap that I haven't seen anywhere else.
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

trueblueky wrote: Thu Apr 09, 2020 5:49 pm
megabad wrote: Thu Apr 09, 2020 4:52 pm
Thanks for posting. First real source I’ve seen. Doesn’t answer everything but at least it is from the senate.
The $146,500 cap for head of household should be $148,500.

The cap given for a family of four seems to indicate a per child increase in the cap that I haven't seen anywhere else.
No, the calculations are correct. Each child is an additional $500, which has the effect of raising the cap by $10,000 each.
trueblueky
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Re: COVID-19 Stimulus Payment Issue

Post by trueblueky »

nps wrote: Thu Apr 09, 2020 6:59 pm
trueblueky wrote: Thu Apr 09, 2020 5:49 pm
megabad wrote: Thu Apr 09, 2020 4:52 pm
Thanks for posting. First real source I’ve seen. Doesn’t answer everything but at least it is from the senate.
The $146,500 cap for head of household should be $148,500.

The cap given for a family of four seems to indicate a per child increase in the cap that I haven't seen anywhere else.
No, the calculations are correct. Each child is an additional $500, which has the effect of raising the cap by $10,000 each.
Are you sure $146,500 shouldn't be $148,500?

I can see figure the amount including children, then figure the phase-out. This was news.
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nps
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

trueblueky wrote: Thu Apr 09, 2020 7:32 pm Are you sure $146,500 shouldn't be $148,500?
Yes
JGoneRiding
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Re: COVID-19 Stimulus Payment Issue

Post by JGoneRiding »

Dottie57 wrote: Thu Apr 09, 2020 4:34 pm
PVW wrote: Thu Apr 09, 2020 1:47 pm
Dottie57 wrote: Wed Apr 08, 2020 8:59 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I actually think this would have been better. As a retiree who had my money for the year set, I don’t need the money. I bet other retirees don’t need it either.

Part of the goal of the stimulus bill was to pump cash into the economy. They couldn't accomplish this solely through unemployment benefits.

As it is now, some unemployment benefits are exceeding what workers were making when they were employed. This affects the labor pool - overpaying the unemployed is not fair to companies that need employees and it's not fair to low paid workers that remain employed.
Every piece of legislation has inequities. I think a blanket check was not the best use of money.
It's not a blanket check. There are clear income limitations
Dottie57
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Re: COVID-19 Stimulus Payment Issue

Post by Dottie57 »

JGoneRiding wrote: Thu Apr 09, 2020 9:02 pm
Dottie57 wrote: Thu Apr 09, 2020 4:34 pm
PVW wrote: Thu Apr 09, 2020 1:47 pm
Dottie57 wrote: Wed Apr 08, 2020 8:59 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I actually think this would have been better. As a retiree who had my money for the year set, I don’t need the money. I bet other retirees don’t need it either.

Part of the goal of the stimulus bill was to pump cash into the economy. They couldn't accomplish this solely through unemployment benefits.

As it is now, some unemployment benefits are exceeding what workers were making when they were employed. This affects the labor pool - overpaying the unemployed is not fair to companies that need employees and it's not fair to low paid workers that remain employed.
Every piece of legislation has inequities. I think a blanket check was not the best use of money.
It's not a blanket check. There are clear income limitations
It certainly cover a large swath of the population. Bogleheads who are planning to invest the money or give to charity don’t have a clear need. I think the check is pure pork.
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LadyGeek
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Re: COVID-19 Stimulus Payment Issue

Post by LadyGeek »

Please stay on-topic, which are the financial aspects. Opinions on rationale for the payments is off-topic.
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Re: COVID-19 Stimulus Payment Issue

Post by Stoic9 »

DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I agree, this would provide help to those directly effected and easily controlled. The rest are not effected, this is a blatant attempt to juice the economy for the wealth.
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Re: COVID-19 Stimulus Payment Issue

Post by PVW »

Stoic9 wrote: Fri Apr 10, 2020 10:44 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I agree, this would provide help to those directly effected and easily controlled. The rest are not effected, this is a blatant attempt to juice the economy for the wealth.
Giving money to everyone that makes less than $100k is a "blatant attempt to juice the economy for the wealth[y]"?

That's some tortuous logic.
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Re: COVID-19 Stimulus Payment Issue

Post by the way »

Stoic9 wrote: Fri Apr 10, 2020 10:44 am
DaftInvestor wrote: Thu Apr 02, 2020 3:30 pm The only way to have resolved this fairly would have been to not have done a stimulus check at all and instead, simply provide a bigger boost to unemployment benefits so those loosing their jobs would get all the needed benefits.
I agree, this would provide help to those directly effected and easily controlled. The rest are not effected, this is a blatant attempt to juice the economy for the wealth.
There are already threads here about the other "effects" like paycuts, shortened hours, suspended 401k match, and (highly encouraged) leave without pay. None of these people can collect unemployment.
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Re: COVID-19 Stimulus Payment Issue

Post by nps »

celia wrote: Thu Apr 02, 2020 3:25 am
freight_train wrote: Wed Apr 01, 2020 9:35 pm How about this: two spouses, one died 2 weeks ago. They filed MFJ for 2018 and just filed for 2019. I strongly suspect 2 $1200 payments are coming. Does the surviving spouse get to keep them both?
First, you only get one payment for 2018/2019. If they know one person has died, they will only pay $1200 for one tax payer.
I don't know where you got that information, but the Washington Post is reporting a payment for an individual who died two years ago based on 2018 tax return.
I have the power of attorney for my 94-year-old mother and received notice this morning that her bank received $2,400. She is a widow. My father died in April 2018. I guess because her 2018 return is a joint one, this automatically generated the double payment.
https://www.washingtonpost.com/business ... story.html
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Re: COVID-19 Stimulus Payment Issue

Post by emoore »

emoore wrote: Thu Apr 02, 2020 3:53 pm I understand that situation. I'm in a similar one. I filed my 2019 taxes with 2 children (under 17) so theoretically I should get $500 for each. But they are claimed by their other parents for 2018 and I'm not sure if the other parents have filed their 2019 taxes or not. Should be interesting to see what happens. I will update this post when the IRS deposits money.
Got the money for both children so it worked out for me.
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Re: COVID-19 Stimulus Payment Issue

Post by freight_train »

celia wrote: Thu Apr 02, 2020 3:25 am
freight_train wrote: Wed Apr 01, 2020 9:35 pm How about this: two spouses, one died 2 weeks ago. They filed MFJ for 2018 and just filed for 2019. I strongly suspect 2 $1200 payments are coming. Does the surviving spouse get to keep them both?
First, you only get one payment for 2018/2019. If they know one person has died, they will only pay $1200 for one tax payer. (Married taxpayers can get $2400 for either year, if they qualify.). In addition, if the 2019 income is over $75k, the widow(er) might not get anything.

They know one person died if it was reported on the tax return or if SS has been notified.
Update: one $2400 credit posted today. The definitely know the other spouse died: social security was notified and the most recent tax return indicated that spouse was deceased.
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