Stimulus check from pandemic 2020

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youngatheart
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Stimulus check from pandemic 2020

Post by youngatheart » Wed Mar 25, 2020 8:02 am

Question:
Do we add the amount of a stimulus check to our income and pay tax on that?
Thanks in advance

ensign_lee
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Re: Stimulus check from pandemic 2020

Post by ensign_lee » Wed Mar 25, 2020 8:11 am

Doubt it. In 2008, it wasn't taxable income

student
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Re: Stimulus check from pandemic 2020

Post by student » Wed Mar 25, 2020 8:17 am

Not everybody will get one. From what I read, "Under the plan as it was being negotiated, individuals who earn $75,000 in adjusted gross income or less would get direct payments of $1,200 each, with married couples earning up to $150,000 receiving $2,400 -- and an additional $500 per each child. The payment would scale down by income, phasing out entirely at $99,000 for singles and $198,000 for couples without children."

orangecrushv
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Re: Stimulus check from pandemic 2020

Post by orangecrushv » Wed Mar 25, 2020 8:26 am

While we won't know until the text of the bill is released, I read that it was going to be "an advance against a tax credit", so not taxable income.

SimpleMan68
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Re: Stimulus check from pandemic 2020

Post by SimpleMan68 » Wed Mar 25, 2020 8:32 am

student wrote:
Wed Mar 25, 2020 8:17 am
Not everybody will get one. From what I read, "Under the plan as it was being negotiated, individuals who earn $75,000 in adjusted gross income or less would get direct payments of $1,200 each, with married couples earning up to $150,000 receiving $2,400 -- and an additional $500 per each child. The payment would scale down by income, phasing out entirely at $99,000 for singles and $198,000 for couples without children."
Does anyone know what year's tax return will be used to determine the AGI? 2018 or 2019? This could make a difference for some people. It will certainly make a difference for my family.

lessismore22
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Re: Stimulus check from pandemic 2020

Post by lessismore22 » Wed Mar 25, 2020 8:34 am

Hard to imagine they’d use 2019 as those aren’t due until July 15th now.

Millennial
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Re: Stimulus check from pandemic 2020

Post by Millennial » Wed Mar 25, 2020 8:35 am

CNBC reports 2018 agi

mervinj7
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Re: Stimulus check from pandemic 2020

Post by mervinj7 » Wed Mar 25, 2020 8:35 am

Folks, this is still pending legislation till it's signed, so I assume it's off limits for now on this forum. See previous thread.

viewtopic.php?f=2&t=309446&newpost=5131 ... ead#unread

Topic Author
youngatheart
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Re: Stimulus check from pandemic 2020

Post by youngatheart » Wed Mar 25, 2020 8:40 am

So Sorry, I see the reason for this and I apologize.

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oldcomputerguy
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Re: Stimulus check from pandemic 2020

Post by oldcomputerguy » Wed Mar 25, 2020 8:47 am

No worries. Yep, this topic is locked as discussing pending legislation. If/when the bill is signed into law by the President, at that point the impact of the new law may be discussed.
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Re: Stimulus check from pandemic 2020

Post by LadyGeek » Fri Mar 27, 2020 4:23 pm

The bill has been signed into law. This thread is reopened to continue the discussion.
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oneleaf
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Re: Stimulus check from pandemic 2020

Post by oneleaf » Fri Mar 27, 2020 4:24 pm

So if the IRS has your direct deposit information, you'll likely get it via direct deposit. What if you owed money and used direct debit? I hope that would work too?

mikep
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Re: Stimulus check from pandemic 2020

Post by mikep » Fri Mar 27, 2020 4:42 pm

If my 2019 income is lower than 2018, should I file taxes as soon as possible or is it already too late? Or will it all get trued up the same way once I have my 2020 income?

dwp456
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Re: Stimulus check from pandemic 2020

Post by dwp456 » Fri Mar 27, 2020 4:54 pm

If using AGI to determine eligibility, then the Roth conversions that I have done (both in 2018 and 2019) will really hurt me! My income falls within the "phase-out" zone, and the conversions have boosted my AGI to the point that I will get a lot smaller payment. Seems that they should exxclude this kind of "income" from consideration, since all I really did was move money I already had from "one pocket to another".

tibbitts
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Re: Stimulus check from pandemic 2020

Post by tibbitts » Fri Mar 27, 2020 4:58 pm

dwp456 wrote:
Fri Mar 27, 2020 4:54 pm
If using AGI to determine eligibility, then the Roth conversions that I have done (both in 2018 and 2019) will really hurt me! My income falls within the "phase-out" zone, and the conversions have boosted my AGI to the point that I will get a lot smaller payment. Seems that they should exxclude this kind of "income" from consideration, since all I really did was move money I already had from "one pocket to another".
Yes, I hadn't thought of that when I did Roth conversions. It would be nice if it were excluded since it isn't really "new" income. I will be okay for 2018 and 2019, but for TY2020 (the coming Covid-some-other-number epidemic, of course) I might be in trouble.

hudson
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AGI or MAGI?

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

In all the news articles that I've read, they say that the stimulus law is using the AGI or Adjusted Gross Income.
I haven't seen MAGI or Modified Adjusted Gross Income anywhere in any articles.
Which is it?

JimMolony
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Re: Stimulus check from pandemic 2020

Post by JimMolony » Fri Mar 27, 2020 5:48 pm

mikep wrote:
Fri Mar 27, 2020 4:42 pm
If my 2019 income is lower than 2018, should I file taxes as soon as possible or is it already too late? Or will it all get trued up the same way once I have my 2020 income?
That's what I did yesterday since my 2019 income was lower when I took the year off. No way my 2018 income would qualify me. Not sure it'll work but I had to do the taxes eventually anyway:)

JimMolony
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Re: Stimulus check from pandemic 2020

Post by JimMolony » Fri Mar 27, 2020 5:50 pm

tibbitts wrote:
Fri Mar 27, 2020 4:58 pm
dwp456 wrote:
Fri Mar 27, 2020 4:54 pm
If using AGI to determine eligibility, then the Roth conversions that I have done (both in 2018 and 2019) will really hurt me! My income falls within the "phase-out" zone, and the conversions have boosted my AGI to the point that I will get a lot smaller payment. Seems that they should exxclude this kind of "income" from consideration, since all I really did was move money I already had from "one pocket to another".
Yes, I hadn't thought of that when I did Roth conversions. It would be nice if it were excluded since it isn't really "new" income. I will be okay for 2018 and 2019, but for TY2020 (the coming Covid-some-other-number epidemic, of course) I might be in trouble.
Hope it works but I kind of doubt it since it was reportable income and part of your AGI.

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Soul.in.Progress
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Re: Stimulus check from pandemic 2020

Post by Soul.in.Progress » Fri Mar 27, 2020 5:51 pm

NBC Today show the other day said that for people who have already filed 2019 taxes, they would use 2019 information, otherwise they would use 2018 information. But I don’t know what the cutoff date is for when you would have had to file 2019 for it to count.
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Dantes
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Re: Stimulus check from pandemic 2020

Post by Dantes » Fri Mar 27, 2020 6:04 pm

While it will be based on 2019 or 2018 tax returns, my understanding is that it will be treated as an advance on a refundable 2020 tax credit. Which is something else to consider when considering Roth conversions or other sources of optional income.

I assume, but do not know for certain, that someone who gets no check or a reduced check because of 2018 or 2019 income, but has less income in 2020 (which could be common), will realize the stimulus amount in their 2020 tax liability.

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Watty
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Re: Stimulus check from pandemic 2020

Post by Watty » Fri Mar 27, 2020 6:09 pm

I am no expert but my understanding is that that the money is actually an advance on a tax credit on your 2020 tax return that you will file in April of 2021. They way I understand it there are two questions;

1) Will you get an automatic deposit or a check based on your 2018 or 2019 tax return?

2) When you do your 2020 taxes will you get the tax credit? That could determine if you will get a big refund if you did not get the money already, or if you will have to pay it back. I don't know for sure but I would think this might be based on your 2020 income.

Here is an article I found about how it may work.

https://www.forbes.com/sites/jimwang/20 ... 2965ab10b9

terran
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Re: Stimulus check from pandemic 2020

Post by terran » Fri Mar 27, 2020 6:12 pm

mikep wrote:
Fri Mar 27, 2020 4:42 pm
If my 2019 income is lower than 2018, should I file taxes as soon as possible or is it already too late? Or will it all get trued up the same way once I have my 2020 income?
If your 2019 income would get you more than either 2018 or 2020, or you need the money now and 2019 would get you more than 2018 regardless of what happens in 2020 then I would file now. If 2020 will get you just as much as 2019 and you're fine waiting until you file in 2020 then I wouldn't worry about it.

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