Stimulus check question.

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Topic Author
BashDash
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Stimulus check question.

Post by BashDash » Thu Apr 09, 2020 9:09 am

Hi all,
Our 2018 adjusted gross income was 129k and our 2019 adjusted gross income was 156k although we haven't submitted yet. Our accountant just did the paperwork waiting for us to sign. Should we wait to submit. We are married filing jointly. Based on my research it seems like it doesn't matter. Any insight is greatly appreciated! Thanks!

runner3081
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Re: Stimulus check question.

Post by runner3081 » Thu Apr 09, 2020 9:21 am

"If Your Tax-Filing Status Is: Married filing jointly
The Income Threshold for a Full Stimulus Payment Is: $150,000"

Hold off on filing until you have received your stimulus direct deposit.

Topic Author
BashDash
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Re: Stimulus check question.

Post by BashDash » Thu Apr 09, 2020 9:31 am

Thanks runner!

I thought I had to be under 200k but I must have not seen the final number. Was I correct in looking at adjusted gross income? It was on different lines on 2018 and 2019 which I thought was unusual I thought the forms were the same each year

runner3081
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Re: Stimulus check question.

Post by runner3081 » Thu Apr 09, 2020 9:41 am

BashDash wrote:
Thu Apr 09, 2020 9:31 am
Thanks runner!

I thought I had to be under 200k but I must have not seen the final number. Was I correct in looking at adjusted gross income? It was on different lines on 2018 and 2019 which I thought was unusual I thought the forms were the same each year
You were looking at the full phase out number. I.e, if you make >198K, you get nothing.

Carson
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Re: Stimulus check question.

Post by Carson » Thu Apr 09, 2020 9:44 am

Yes they changed the layout of the 1040 from 2018 to 2019. "Adjusted Gross Income" appears on different numbered lines.
30-something personal finance enthusiast, just get getting started on this whole portfolio thing.

Gill
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Re: Stimulus check question.

Post by Gill » Thu Apr 09, 2020 9:52 am

As I understand it, the benefit phases down beginning at $150k through $200k. If I was in your situation I wouldn't file until you receive the check. You should receive the maximum benefit based on your 2018 income but you wouldn't if your 2019 return was used.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

terran
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Re: Stimulus check question.

Post by terran » Thu Apr 09, 2020 9:54 am

Yes, AGI is the relevant number. You'll get the stimulus money sooner and may get more (unless 2020 income is lower) if you wait to file 2019 until you get the stimulus money.

dukeblue219
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Re: Stimulus check question.

Post by dukeblue219 » Thu Apr 09, 2020 9:57 am

runner3081 wrote:
Thu Apr 09, 2020 9:41 am

You were looking at the full phase out number. I.e, if you make >198K, you get nothing.
(if you are MFJ and have no dependent kids)

pshonore
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Re: Stimulus check question.

Post by pshonore » Thu Apr 09, 2020 10:21 am

dukeblue219 wrote:
Thu Apr 09, 2020 9:57 am
runner3081 wrote:
Thu Apr 09, 2020 9:41 am

You were looking at the full phase out number. I.e, if you make >198K, you get nothing.
(if you are MFJ and have no dependent kids)
Is there a different phase out if you have kids? I believe most of what's been written says you lose $50 per person for every $1000 your MFJ AGI exceeds $150K. But how that affects the $500/kid has not been documented to my knowledge.
Last edited by pshonore on Thu Apr 09, 2020 10:22 am, edited 1 time in total.

Topic Author
BashDash
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Re: Stimulus check question.

Post by BashDash » Thu Apr 09, 2020 10:22 am

Forgot to add that there are 2 kids. Thanks for all the help!

Ron Ronnerson
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Re: Stimulus check question.

Post by Ron Ronnerson » Thu Apr 09, 2020 10:29 am

With filing jointly and two kids, you’ll (likely) get $3,400 if you wait to file your 2019 taxes vs. $3,100 if you file 2019 taxes now. So, just wait

Topic Author
BashDash
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Re: Stimulus check question.

Post by BashDash » Thu Apr 09, 2020 10:36 am

Thanks Ron. I have learned a lot from your posts as a fellow teacher.

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Rainier
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Re: Stimulus check question.

Post by Rainier » Thu Apr 09, 2020 10:37 am

If 2019 is lower AGI than 2018 do you get to use 2019 or is it the higher of the two years? I filed 2019 in early March and it was less than 2018.

Also, anybody receive the payment yet via direct deposit? I believe they were going to start today.

runner3081
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Re: Stimulus check question.

Post by runner3081 » Thu Apr 09, 2020 11:06 am

dukeblue219 wrote:
Thu Apr 09, 2020 9:57 am
runner3081 wrote:
Thu Apr 09, 2020 9:41 am

You were looking at the full phase out number. I.e, if you make >198K, you get nothing.
(if you are MFJ and have no dependent kids)
Where did you get that information? Number of dependents do not matter for phase out rules.

dukeblue219
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Re: Stimulus check question.

Post by dukeblue219 » Thu Apr 09, 2020 12:30 pm

runner3081 wrote:
Thu Apr 09, 2020 11:06 am
dukeblue219 wrote:
Thu Apr 09, 2020 9:57 am
runner3081 wrote:
Thu Apr 09, 2020 9:41 am

You were looking at the full phase out number. I.e, if you make >198K, you get nothing.
(if you are MFJ and have no dependent kids)
Where did you get that information? Number of dependents do not matter for phase out rules.
Sure it does. That's how the Washington Post stimulus calculator is doing it, anyway. The phaseouts start at $150k for everyone (MFJ) but if you have kids you have more available to phase out so it doesn't go away entirely until a higher amount. As one example, if you have 7 kids (yikes) and earn $250k you still get $900.

If I'm doing the math right, each kid adds $500 to your check, which brings the income for full phase out up by $10k.

https://www.washingtonpost.com/graphics ... alculator/

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Rainier
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Re: Stimulus check question.

Post by Rainier » Thu Apr 09, 2020 1:15 pm

dukeblue219 wrote:
Thu Apr 09, 2020 12:30 pm
runner3081 wrote:
Thu Apr 09, 2020 11:06 am
dukeblue219 wrote:
Thu Apr 09, 2020 9:57 am
runner3081 wrote:
Thu Apr 09, 2020 9:41 am

You were looking at the full phase out number. I.e, if you make >198K, you get nothing.
(if you are MFJ and have no dependent kids)
Where did you get that information? Number of dependents do not matter for phase out rules.
Sure it does. That's how the Washington Post stimulus calculator is doing it, anyway. The phaseouts start at $150k for everyone (MFJ) but if you have kids you have more available to phase out so it doesn't go away entirely until a higher amount. As one example, if you have 7 kids (yikes) and earn $250k you still get $900.

If I'm doing the math right, each kid adds $500 to your check, which brings the income for full phase out up by $10k.

https://www.washingtonpost.com/graphics ... alculator/
The calculator is wrong. No phaseout for kids' portion in the $150k-$198k range, fully phased out above $198k.

dukeblue219
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Re: Stimulus check question.

Post by dukeblue219 » Thu Apr 09, 2020 1:45 pm

Rainier wrote:
Thu Apr 09, 2020 1:15 pm
The calculator is wrong. No phaseout for kids' portion in the $150k-$198k range, fully phased out above $198k.
Well, shoot. Our AGI for 2018 was $204k-ish and just a bit less in 19 (unfiled anyway).

So the kids' portions don't phase out? They just go away? Every story I've seen says that's not how it works. Forbes (https://www.forbes.com/sites/advisor/20 ... -payments/) says

"Keep in mind that each qualifying child under the age of 17 will add an additional $500 to these stimulus amounts. The payment for children begins to phase out (at the same $5 per $100 of income), after the payment to adults has completely phased out."

WSJ (https://www.wsj.com/articles/everything ... 1585229988):
"For those with no children, the benefit disappears at $99,000 for individuals and $198,000 for married couples"

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Rainier
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Re: Stimulus check question.

Post by Rainier » Fri Apr 10, 2020 12:31 pm

dukeblue219 wrote:
Thu Apr 09, 2020 1:45 pm
Rainier wrote:
Thu Apr 09, 2020 1:15 pm
The calculator is wrong. No phaseout for kids' portion in the $150k-$198k range, fully phased out above $198k.
Well, shoot. Our AGI for 2018 was $204k-ish and just a bit less in 19 (unfiled anyway).

So the kids' portions don't phase out? They just go away? Every story I've seen says that's not how it works. Forbes (https://www.forbes.com/sites/advisor/20 ... -payments/) says

"Keep in mind that each qualifying child under the age of 17 will add an additional $500 to these stimulus amounts. The payment for children begins to phase out (at the same $5 per $100 of income), after the payment to adults has completely phased out."

WSJ (https://www.wsj.com/articles/everything ... 1585229988):
"For those with no children, the benefit disappears at $99,000 for individuals and $198,000 for married couples"
Okay you might be right.

dukeblue219
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Re: Stimulus check question.

Post by dukeblue219 » Fri Apr 10, 2020 1:01 pm

Rainier wrote:
Fri Apr 10, 2020 12:31 pm
Okay you might be right.
I'll let everyone know if I get a check. :sharebeer

Topic Author
BashDash
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Re: Stimulus check question.

Post by BashDash » Fri Apr 10, 2020 3:42 pm

Thanks for all the help!

Hyperchicken
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Re: Stimulus check question.

Post by Hyperchicken » Fri Apr 10, 2020 3:45 pm

Tracking tool should be coming up next week:

https://www.irs.gov/newsroom/treasury-i ... t-payments
To help everyone check on the status of their payments, the IRS is building a second new tool expected to be available for use by April 17. Get My Payment will provide people with the status of their payment, including the date their payment is scheduled to be deposited into their bank account or mailed to them.

joe-kr
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Re: Stimulus check question.

Post by joe-kr » Fri Apr 10, 2020 6:02 pm

My oldest child will turn 18 this year, so I figured she would not qualify for the $500. But since I did not yet file for 2019, the IRS will use my 2018 taxes. My daughter was 16 in 2018, so some of the online calculators make it seem like I’ll get the $500.

We’ll see when the deposit hits. Any one else in this situation with a child to be 18 this year?

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jhfenton
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Re: Stimulus check question.

Post by jhfenton » Sat Apr 11, 2020 10:33 am

joe-kr wrote:
Fri Apr 10, 2020 6:02 pm
My oldest child will turn 18 this year, so I figured she would not qualify for the $500. But since I did not yet file for 2019, the IRS will use my 2018 taxes. My daughter was 16 in 2018, so some of the online calculators make it seem like I’ll get the $500.

We’ll see when the deposit hits. Any one else in this situation with a child to be 18 this year?
Yes. We're in the same situation. Our older son will turn 18 in November. I hadn't looked closely at the language, but I've assumed that we would receive nothing for him under the current language. We had not filed for 2019 yet, because we owe this year. Our younger son will be 16 in June, so I'm expecting $2,900 for us ($1,600 of which will go to pay the taxes due).
Last edited by jhfenton on Sat Apr 11, 2020 10:38 am, edited 1 time in total.

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Kenkat
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Re: Stimulus check question.

Post by Kenkat » Sat Apr 11, 2020 10:38 am

jhfenton wrote:
Sat Apr 11, 2020 10:33 am
joe-kr wrote:
Fri Apr 10, 2020 6:02 pm
My oldest child will turn 18 this year, so I figured she would not qualify for the $500. But since I did not yet file for 2019, the IRS will use my 2018 taxes. My daughter was 16 in 2018, so some of the online calculators make it seem like I’ll get the $500.

We’ll see when the deposit hits. Any one else in this situation with a child to be 18 this year?
Yes. Our older son will turn 18 in November. I hadn't looked closely at the language, but I've assumed that we would receive nothing for him under the current language. We had not filed for 2019 yet we owe this year. Our younger son will be 16 in June, so I'm expecting $2,900 for us ($1,600 of which will go to pay the taxes due).
I don’t understand the taxes due comment; this is a tax credit, not income, so it won’t be added to taxable income and no taxes will be due on it. Unless you are saying you are going to use some of the money to make a quarterly estimated tax payment that is due?

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jhfenton
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Re: Stimulus check question.

Post by jhfenton » Sat Apr 11, 2020 10:42 am

Kenkat wrote:
Sat Apr 11, 2020 10:38 am
jhfenton wrote:
Sat Apr 11, 2020 10:33 am
Yes. Our older son will turn 18 in November. I hadn't looked closely at the language, but I've assumed that we would receive nothing for him under the current language. We had not filed for 2019 yet, because we owe this year. Our younger son will be 16 in June, so I'm expecting $2,900 for us ($1,600 of which will go to pay the taxes due).
I don’t understand the taxes due comment; this is a tax credit, not income, so it won’t be added to taxable income and no taxes will be due on it. Unless you are saying you are going to use some of the money to make a quarterly estimated tax payment that is due?
As I said, we owe $1,600 for tax year 2019. That has nothing to do with the stimulus payment.

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Kenkat
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Re: Stimulus check question.

Post by Kenkat » Sat Apr 11, 2020 10:47 am

jhfenton wrote:
Sat Apr 11, 2020 10:42 am
Kenkat wrote:
Sat Apr 11, 2020 10:38 am
jhfenton wrote:
Sat Apr 11, 2020 10:33 am
Yes. Our older son will turn 18 in November. I hadn't looked closely at the language, but I've assumed that we would receive nothing for him under the current language. We had not filed for 2019 yet, because we owe this year. Our younger son will be 16 in June, so I'm expecting $2,900 for us ($1,600 of which will go to pay the taxes due).
I don’t understand the taxes due comment; this is a tax credit, not income, so it won’t be added to taxable income and no taxes will be due on it. Unless you are saying you are going to use some of the money to make a quarterly estimated tax payment that is due?
As I said, we owe $1,600 for tax year 2019. That has nothing to do with the stimulus payment.
Got it. Didn’t make the connection between the two sentences.

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jhfenton
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Re: Stimulus check question.

Post by jhfenton » Sat Apr 11, 2020 10:50 am

Kenkat wrote:
Sat Apr 11, 2020 10:47 am
jhfenton wrote:
Sat Apr 11, 2020 10:42 am
As I said, we owe $1,600 for tax year 2019. That has nothing to do with the stimulus payment.
Got it. Didn’t make the connection between the two sentences.
:beer It's just mental accounting that makes me feel less annoyed by the $1,600 tax bill. We don't usually owe that much, and not much had changed from 2018, so it came as a surprise. (It is mostly our 17 year old's fault for turning 17. We lost most of his child tax credit compared to 2018.)

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jhfenton
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Re: Stimulus check question.

Post by jhfenton » Mon Apr 13, 2020 8:15 am

jhfenton wrote:
Sat Apr 11, 2020 10:33 am
joe-kr wrote:
Fri Apr 10, 2020 6:02 pm
My oldest child will turn 18 this year, so I figured she would not qualify for the $500. But since I did not yet file for 2019, the IRS will use my 2018 taxes. My daughter was 16 in 2018, so some of the online calculators make it seem like I’ll get the $500.

We’ll see when the deposit hits. Any one else in this situation with a child to be 18 this year?
Yes. We're in the same situation. Our older son will turn 18 in November. I hadn't looked closely at the language, but I've assumed that we would receive nothing for him under the current language. We had not filed for 2019 yet, because we owe this year. Our younger son will be 16 in June, so I'm expecting $2,900 for us ($1,600 of which will go to pay the taxes due).
We have a $3,400 deposit pending in our checking account today, so I guess the answer to the question is that they go by the age/status of the child when you last filed your tax return. Since our son was 16 when we filed for 2018, we appear to be receiving $500 for him.

Citifan
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Re: Stimulus check question.

Post by Citifan » Mon Apr 13, 2020 12:31 pm

I'm curious if anyone is in this particular situation or knows the answer. I e-filed in 2018 and 2019 in the income range both years to receive a reduced payment. In both years i used taxact and supplied direct deposit information for refund in 2018, but in 2019 I owed a small amount. I've seen wording that seems to indicate if you paid taxes (didn't receive a refund, then you'd receive a paper check. Further, the paper checks are being mailed out in a staggered manner depending on income.

So the bottom line of my question, would I consider that the IRS has my direct deposit information or not?

*edit* with the launch of the new IRS site to check status I can see now that because I filed in 2019 and did not receive a refund they don't consider the banking information I provided to direct pay.

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