Stimulus money if I owed taxes in 2019?

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Topic Author
sergio
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Joined: Sat Jun 20, 2015 6:52 pm

Stimulus money if I owed taxes in 2019?

Post by sergio »

I owed around $3000 in federal taxes in 2019 (no penalty) and had it directly withdrawn from my checking account. The same checking account had a $300 refund deposited into it in 2018.

Will I still get the 2020 stimulus money directly deposited into this checking account, even though it was used to pay (rather than receive) funds for my 2019 return? I can't seem to find this info.
Silk McCue
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Re: Stimulus money if I owed taxes in 2019?

Post by Silk McCue »

From the IRS page:
How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
I read that to say they will use the account you supplied to pull your tax payment. That is also common sense from my perspective.

Cheers
Topic Author
sergio
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Re: Stimulus money if I owed taxes in 2019?

Post by sergio »

Silk McCue wrote: Fri Apr 03, 2020 12:23 pm From the IRS page:
How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
I read that to say they will use the account you supplied to pull your tax payment. That is also common sense from my perspective.

Cheers
Thanks, that was my assumption as well.
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petercooperjr
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Re: Stimulus money if I owed taxes in 2019?

Post by petercooperjr »

I'm in roughly the same boat, that I got a refund for my 2018 taxes but paying on the 2019. I wouldn't really expect them to use e-file direct debit information since those routing/account numbers aren't really "on the return", though maybe I'm thinking too paper-centric. I think that when the last "economic stimulus payments" went out in 2008 you needed to have had a direct deposit (not a direct debit) for them to direct deposit the stimulus, though it may be different this time.

In any event, the IRS has on its Economic impact payments page that "In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail." So I'm planning on make sure my bank account is entered in that when it becomes available, just in case.
Last edited by petercooperjr on Sat Apr 04, 2020 10:02 am, edited 1 time in total.
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Flobes
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Re: Stimulus money if I owed taxes in 2019?

Post by Flobes »

sergio wrote: Fri Apr 03, 2020 12:12 pm Will I still get the 2020 stimulus money directly deposited into this checking account, even though it was used to pay (rather than receive) funds for my 2019 return?
Strategies for implementation of CARES Act are changing every day. Here's yesterday's news:

Starting Monday 4/13, recovery money will be sent via direct deposit to the 70 million taxpayers for whom the government has banking information they deem credible. Direct deposit phase will be completed in two weeks. Those with lowest AGIs will get moneys first.

Govt estimates there are 80 million taxpayers for whom they do not have banking info.

At end of April or beginning of May, govt will open a web portal where those who've not yet received their money can enter their banking info to get direct deposit.

After that, government will begin printing and mailing checks, starting with lowest AGIs. Estimated timeline for "mail a check" process is four+ months, as maximum govt capacity is 20 million checks a month. Those with the highest qualifying AGIs where IRS does not have bank routing info can expect to wait five months for relief funds.

OP: If this is indeed the process, you'll know by the end of this month whether your banking info was usable, and if not you'll go to the web portal and share your banking details if you want to get your money sooner rather than later.
Topic Author
sergio
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Re: Stimulus money if I owed taxes in 2019?

Post by sergio »

That's a good strategy. Thanks!
Topic Author
sergio
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Re: Stimulus money if I owed taxes in 2019?

Post by sergio »

petercooperjr wrote: Fri Apr 03, 2020 2:53 pm I'm in roughly the same boat, that I got a refund for my 2018 taxes but paying on the 2019. I wouldn't really expect them to use e-file direct debit information since those routing/account numbers are really "on the return", though maybe I'm thinking too paper-centric. I think that when the last "economic stimulus payments" went out in 2008 you needed to have had a direct deposit (not a direct debit) for them to direct deposit the stimulus, though it may be different this time.

In any event, the IRS has on its Economic impact payments page that "In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail." So I'm planning on make sure my bank account is entered in that when it becomes available, just in case.
That's what confused me. I'm not sure if them debiting my account in 2019 will actually "allow" them to make a deposit to that same account. I guess if I don't see the money deposited by the end of April, I'll have a chance to provide this info late April/May.
BrownEyedGirl_27
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Re: Stimulus money if I owed taxes in 2019?

Post by BrownEyedGirl_27 »

I switched banks and closed out my old account so this info is very helpful. We were wondering how long it would take, so thank you!
"Your mind has a mind of its own. At the very moment when you are most convinced of your own rationality, you may be feeling rather than thinking your way toward a decision.” | Jason Zweig
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William4u
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Re: Stimulus money if I owed taxes in 2019?

Post by William4u »

sergio wrote: Fri Apr 03, 2020 1:29 pm
Silk McCue wrote: Fri Apr 03, 2020 12:23 pm From the IRS page:
How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
I read that to say they will use the account you supplied to pull your tax payment. That is also common sense from my perspective.

Cheers
Thanks, that was my assumption as well.

It is a natural assumption, but unfortunately the IRS explicitly states it will not direct deposit the stimulus based on information from direct debit payments to the IRS...
Q. I chose direct debit to pay my tax bill. Will my stimulus payment be direct deposited to the same account?
A. No, the account information used for an incoming direct debit payment to the IRS cannot be used as the account information for the direct deposit of the stimulus payment. People who choose direct debit to pay a balance due will receive their stimulus payments by paper check through the mail.
https://www.irs.gov/vi/newsroom/economi ... ct-deposit
MtnBiker
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Re: Stimulus money if I owed taxes in 2019?

Post by MtnBiker »

William4u wrote: Mon Apr 06, 2020 10:57 pm
sergio wrote: Fri Apr 03, 2020 1:29 pm
Silk McCue wrote: Fri Apr 03, 2020 12:23 pm From the IRS page:
How will the IRS know where to send my payment?

The vast majority of people do not need to take any action. The IRS will calculate and automatically send the economic impact payment to those eligible.

For people who have already filed their 2019 tax returns, the IRS will use this information to calculate the payment amount. For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the return filed.
I read that to say they will use the account you supplied to pull your tax payment. That is also common sense from my perspective.

Cheers
Thanks, that was my assumption as well.

It is a natural assumption, but unfortunately the IRS explicitly states it will not direct deposit the stimulus based on information from direct debit payments to the IRS...
Q. I chose direct debit to pay my tax bill. Will my stimulus payment be direct deposited to the same account?
A. No, the account information used for an incoming direct debit payment to the IRS cannot be used as the account information for the direct deposit of the stimulus payment. People who choose direct debit to pay a balance due will receive their stimulus payments by paper check through the mail.
https://www.irs.gov/vi/newsroom/economi ... ct-deposit
The link referenced is to archival information regarding stimulus payments made based on 2007/2008 tax returns. The information may no longer apply today. The fine print at the bottom of the page says
This page is designated as historical and is no longer updated
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William4u
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Re: Stimulus money if I owed taxes in 2019?

Post by William4u »

Today's Washington Post...
However, the IRS cannot make direct deposits into bank accounts used to make electronic tax payments, even if that account information is known to the agency, according to IRS spokesman Eric Smith.
https://www.washingtonpost.com/business ... -payments/

I was able to enter my direct deposit info on the IRS get My Payment site.
Northster
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Re: Stimulus money if I owed taxes in 2019?

Post by Northster »

For a long time I was getting 'no info available' messages at IRS site, but 2 days ago was able to provide banking information.
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