Poll:Of the $600 stimulus check, how much will you spend?

[geeky_grrl]

Money is fungible; I'll probably spend the $600 but not in additional spending, I'll just need to withdraw that much less from my brokerage next year.

I don't plan on eating out or travelling through most of 2021 so I don't have a lot of things to spend money on anyhow.

 

[MuirWannabe]

Can anyone confirm if eligibility for this $600 check is based on 2019 taxes or is it 2020 taxes? Thanks

 

[statsman]

Zero. The bill for all of the lockdowns and excessive bailouts will come due soon enough, and it won't be pretty.

 

[Oilcan]

Fortunately we don't qualify. And do feel for the unfortunate that do qualify and desperately need it!

 

[Koolau]

Money is fungible; I'll probably spend the $600 but not in additional spending, I'll just need to withdraw that much less from my brokerage next year.

I don't plan on eating out or travelling through most of 2021 so I don't have a lot of things to spend money on anyhow.

To most of us here, I agree that money is fungible. No criticism intended, but if you don't have any money, "fungible" becomes a "logical absurdity." I guess I'm just struggling with the dire circumstances I see around me. In the midst of wealth, natural beauty and warm tropical breezes I see folks who WERE making it and now are truly on the edge. We've always been a boom to bust to boom state, but it seems different this time. For the first time since we've lived here our property assessment went DOWN. I was truly shocked. Not sure what the future holds.

Well. Enough of that! Think I'll go stimulate the economy (anyone want to come along?)

 

[street]

Was that through a charity?

Yes, a local charity where every dime was given to people that qualified with the covid shut downs and slow downs. Help them with a pay check etc..

 

[JoeWras]

Zero. Still using these to make up for the loss we incurred on a canceled overseas trip. This will make us whole.

 

[GravitySucks]

If DD2s work doesnt get shut down half will go to the food Bank and the other half will be spent supporting New England oyster and lobster men.
If she's forced to unemployment it'll all go to her.

 

[SecondCor521]

Can anyone confirm if eligibility for this $600 check is based on 2019 taxes or is it 2020 taxes? Thanks

My early understanding is that nobody knows yet as the bill has not been published.

*Speculation* is that it is the same rules as the CARES Act, just half the dollar amount. If that's true, then you might qualify based on your 2019 or 2018 tax information. If the credit calculated with your 2020 income is higher then you'd be made whole on your 2020 return; if the credit is lower then no payback of any excess.

 

[Dtail]

Zero for now.

 

[MuirWannabe]

My early understanding is that nobody knows yet as the bill has not been published.



*Speculation* is that it is the same rules as the CARES Act, just half the dollar amount. If that's true, then you might qualify based on your 2019 or 2018 tax information. If the credit calculated with your 2020 income is higher then you'd be made whole on your 2020 return; if the credit is lower then no payback of any excess.

Thanks for your reply. Based on 2018 or 2019 taxes I was ineligible. I did not receive a check earlier in the year from the CARES act. So, I guess that means I’m likely ineligible for this $600 check. My 2020 income would make me eligible, so that’s why I was asking.
I’m not following your last sentence regarding 2020 credits. I don’t understand. Sorry. Can you elaborate?
Muir

 

[LRDave]

All of it. 2021 has some big expenses coming up - exterior of our house will be painted and DS's wedding.

 

[MRG]

Don't have it yet. The last round went to takeout and big tips. I expect we'll do the same.

 

[Ronstar]

All of it. I need a bike rack for my ebike by spring.

 

[SecondCor521]

Thanks for your reply. Based on 2018 or 2019 taxes I was ineligible. I did not receive a check earlier in the year from the CARES act. So, I guess that means I’m likely ineligible for this $600 check. My 2020 income would make me eligible, so that’s why I was asking.
I’m not following your last sentence regarding 2020 credits. I don’t understand. Sorry. Can you elaborate?
Muir

Given your situation, you'll be able to get the $1200 credit from the CARES Act on line 30 of your tax return. It's the one labeled "Recovery rebate credit".

Depending on how this new HEALS bill is worded, you may be able to also get the $600 credit on that same line of your tax return, so in your case line 30 might end up being $1800 ($1200 CARES Act plus $600 HEALS Act).

What I meant by the last sentence is that these credits are structured to where people get them one of two ways: either in advance, based on their 2019 or 2018 tax information, or when they file their 2020 tax return. They did the advance thing so that the money would get out into the economy faster.

For people whose tax situation did not change between 2018/2019 and 2020, they'll get the credit in advance and it will be the amount they should have gotten and line 30 will be a zero.

For people whose tax situation changed between 2018/2019 and 2020, if their credit went up they'll get an additional amount on line 30 to make them square - so if you were entitled to $100 based on your 2018/2019 situation and $500 on your 2020 situation, you'd get the additional $400 on line 30.

For people who got an advance payment based on their 2018/2019 situation that was higher than what they should have gotten based on their 2020 tax situation, they won't have to pay back the extra. Line 30 would start off looking like it should be negative, but the IRS instructions and tax law won't let it go below $0.

Most people talk about the credits as though they're binary, as though you either get $0 or you get $1200. But there are income phase out ranges so in fact people could get any amount in between.

ETA: You could also just read this article here, which looks like it does a good job of explaining it all:

https://www.forbes.com/sites/kellyp...ovid-related-stimulus-checks/?sh=50829e8d5c1b

 

[Chuckanut]

I will do what I did with the first stimulus check. I will divided it equally among my children who have all been hit hard by the closing of businesses and schools.

 

[ExFlyBoy5]

My early understanding is that nobody knows yet as the bill has not been published.

*Speculation* is that it is the same rules as the CARES Act, just half the dollar amount. If that's true, then you might qualify based on your 2019 or 2018 tax information. If the credit calculated with your 2020 income is higher then you'd be made whole on your 2020 return; if the credit is lower then no payback of any excess.

I think it would be based on what you got the 1st time around and what figures they used to qualify you. The Treasury Secretary mentioned this AM that if signed, checks could start rolling next week...so my not-so-educated guess if that they would just do a "repeat distro list; New amount...$600/pp"

 

[geeky_grrl]

To most of us here, I agree that money is fungible. No criticism intended, but if you don't have any money, "fungible" becomes a "logical absurdity." I guess I'm just struggling with the dire circumstances I see around me. In the midst of wealth, natural beauty and warm tropical breezes I see folks who WERE making it and now are truly on the edge. We've always been a boom to bust to boom state, but it seems different this time. For the first time since we've lived here our property assessment went DOWN. I was truly shocked. Not sure what the future holds.

Well. Enough of that! Think I'll go stimulate the economy (anyone want to come along?)

Yes, there are a lot of people in need. I'd had rather more generous unemployment and need based assistance than checks to people like me who don't have need. But since I literally haven't gone anywhere in months and don't feel safe leaving my house it is hard for me to contribute a lot to the economy with my stimulus check.

 

[harllee]

DH and I will give all of our stimulus money to local charities, probably the food bank. That is what we did with our first $2400 stimulus. We don't need it and there are so many people out there needing help.

 

[RE2Boys]

Voted "other". $600 plus or minus doesn't change any of my spending plans at all, totally meaningless amount. I have been more conscious of supporting the small merchants and locally owned eateries and have ramped up some charitable giving to local homeless shelters and food pantries. None of this has anything to do with the stimulus checks.

 

[Souschef]

I will donate it all to the local food bank

 

[PointBreeze]

DH and I will give all of our stimulus money to local charities, probably the food bank. That is what we did with our first $2400 stimulus. We don't need it and there are so many people out there needing help.

We gave 1/2 of the first to the Food Bank and put the other half into our savings.

This time we'll gave half to the Food Bank and spend the other half on something a little pricey, as cabin fever is really starting to kick in.

One of my primary retirement hobbies is botanical art (I'm working on a certificate at the Phipps Conservatory in Pittsburgh). I've been lusting after a $175 set of excellent artist's colored pencils for a while now, so that's where I'll be spending some. The rest will probably go towards high-end watercolor paper.

I've attached a sample of what can be done with good quality artist's colored pencils. It was my final project for an intermediate color pencil class.

 

[Which Roger]

Will donate it.

 

[Midpack]

I’m an other like last time, good problem.

 

[scrabbler1]

Given your situation, you'll be able to get the $1200 credit from the CARES Act on line 30 of your tax return. It's the one labeled "Recovery rebate credit".

Depending on how this new HEALS bill is worded, you may be able to also get the $600 credit on that same line of your tax return, so in your case line 30 might end up being $1800 ($1200 CARES Act plus $600 HEALS Act).

What I meant by the last sentence is that these credits are structured to where people get them one of two ways: either in advance, based on their 2019 or 2018 tax information, or when they file their 2020 tax return. They did the advance thing so that the money would get out into the economy faster.

For people whose tax situation did not change between 2018/2019 and 2020, they'll get the credit in advance and it will be the amount they should have gotten and line 30 will be a zero.

For people whose tax situation changed between 2018/2019 and 2020, if their credit went up they'll get an additional amount on line 30 to make them square - so if you were entitled to $100 based on your 2018/2019 situation and $500 on your 2020 situation, you'd get the additional $400 on line 30.

For people who got an advance payment based on their 2018/2019 situation that was higher than what they should have gotten based on their 2020 tax situation, they won't have to pay back the extra. Line 30 would start off looking like it should be negative, but the IRS instructions and tax law won't let it go below $0.

Most people talk about the credits as though they're binary, as though you either get $0 or you get $1200. But there are income phase out ranges so in fact people could get any amount in between.

ETA: You could also just read this article here, which looks like it does a good job of explaining it all:

https://www.forbes.com/sites/kellyp...ovid-related-stimulus-checks/?sh=50829e8d5c1b

I remember being surprised I got a $1,200 check earlier this year because I had already filed my 2019 return which showed an income of about $99k due to some big cap gains at the end of the year. My 2018 income was less than $75k, so the Treasury must have used that year's return instead (or they hadn't yet processed the 2019 return).

This time around, however, the 2019 return has definitely been processed. But, like my 2018 return, my 2020 return will definitely show income well below $75k. So, any amount I receive which is less than $600 I can definitely claim as a credit on a future return. Will that be the 2020 return, as you speculate, or will I have to wait for the 2021 return? The 2020 return (no longer in Draft form) now appears in the IRS website although the instruction booklet's latest year is still 2019.

As for what I will do with it, I will bank it. I already run a surplus of income over expenses, so this will only add to that surplus.