Got stimulus debit card, how do I get paper check?

[cathy63]

So, if someone is subject to RMDs and received less than $1200 because of ‘19 income levels, and opts to not take a distribution this year, with the resulting lower AGI they will still get some more stimulus money?

Yes, on your 2020 tax return you'll calculate the amount of stimulus due based on this year's income and subtract the amount already received in advance. Any number greater than $0 will be entered as a refundable tax credit (meaning that that even if your tax liability is $0, you will still receive the payment).

 

[spncity]

From their FAQs page:
This says the limit per transaction is $2500, but I did see the $1000 number on a Bogleheads thread. I don't know if they have changed it, or maybe the Bogleheads guys were wrong.

The ACH transfer limit is higher than the ATM cash withdrawal limit.

 

[MichaelB]

Yes, on your 2020 tax return you'll calculate the amount of stimulus due based on this year's income and subtract the amount already received in advance. Any number greater than $0 will be entered as a refundable tax credit (meaning that that even if your tax liability is $0, you will still receive the payment).

Nice, thanks for confirming. This is my mother’s situation. She can forgo the distributions this year, and probably will have less capital gain distributions, so her income should be substantially less than ‘19.

 

[RetireBy90]

I heard from someone who received them that they were able to take to their bank and they depositors the cash into their account. Wasn’t a big deal and no fees.

Same here, my neighbor almost threw his card away but I heard a story on local news and he was complaining about not receiving his check yet. I mentioned the story and he found it in his shred stack.

He took it to local CU and they deposited entire amount to his checking account.

 

[Gumby]

So, if someone is subject to RMDs and received less than $1200 because of ‘19 income levels, and opts to not take a distribution this year, with the resulting lower AGI they will still get some more stimulus money?

Exactly my situation. Based on our 2018 return (when we were working), we only got $471. However, our 2020 AGI will be low enough that we qualify for all $2400, so we'll get a $1929 credit against our taxes when we file next April.

 

[INTJ10]

Close. The checks were an advance payment of a credit to be applied to your 2020 income taxes. So it is your 2020 AGI that ultimately will determine the size of the credit to which you'll be entitled. However, if based on either 2018 or 2019 AGI you got a check, but you would be entitled to less based on 2020 AGI, you won't have to pay the excess back.

Cool! I happily stand corrected. That means I have a chance to get a little more money.

 

[projectmaximus]

From their FAQs page:



This says the limit per transaction is $2500, but I did see the $1000 number on a Bogleheads thread. I don't know if they have changed it, or maybe the Bogleheads guys were wrong.

If you're not willing to activate the card and create a username and password on their site, then maybe going into your own bank and asking them for help would be a better option for you.

I transferred $2000 today and there were no fees. I think the limit is $2500.

I think you still have to activate the card to do it at the bank...cause you create the PIN when you activate.

 

[Bongleur]

I heard a rumor that the next stimulus distribution will be executed by adding money to these debit cards.

Hope those lucky enough to have gotten a paper check will get the same again.

 

[Badger]

I received my paper check and immediately cashed it. I wanted the cash in my hand.


I already took the money out for 2020 RMD before the new ruling. What I was thinking was to have that money returned to my IRA and then have the same amount moved to a Roth IRA and pay the taxes on it (have already been paying quarterly to cover the 2020 taxes assuming the RMD) . That would then lower the IRA balance for use in the formula for the stimulus as well as increase the holdings in my Roth IRA for future use or children's inheritance.



Is this possible to do?


Cheers!

 

[cathy63]

I received my paper check and immediately cashed it. I wanted the cash in my hand.


I already took the money out for 2020 RMD before the new ruling. What I was thinking was to have that money returned to my IRA and then have the same amount moved to a Roth IRA and pay the taxes on it (have already been paying quarterly to cover the 2020 taxes assuming the RMD) . That would then lower the IRA balance for use in the formula for the stimulus as well as increase the holdings in my Roth IRA for future use or children's inheritance.



Is this possible to do?


Cheers!

Here is some info about what avenues are available to those who'd already taken 2020 RMDs prior to the passage of the CARES Act. https://www.kitces.com/blog/2020-rmd-waived-cares-act-irs-notice-2020-23-fix-unwanted-rmd-rollover/

 

[Wincherr]

Grumpy Much?

Wow....the things we find to complain about. The OP sounds very grumpy and negative.

 

[imnontrad]

Use that debit card to pay for groceries, gas, etc. until gone. And when you buy something and get the option for cash back, take the max - no ATM fees.