Getting stimulus $....on the backend

[Canoesmith]

Most of you were probably tracking this already but I wasn't. I retired at the end of 2019 and made a “bunch” my final year. Stimulus payments were based on 2019 income and DW and I didn't receive the $3600 that was sent out in 2020.

Ok.

Fast forward to 2020 taxes with a more modest line 11 taxable number and lo and behold, $3600 on the backend - tax credit/return.

Pleasant surprise.

 

[audreyh1]

Yes, that’s right. If you are owed stimulus funds based on 2020 income, it can be claimed as a tax credit on your 2020 return.

 

[Out-to-Lunch]

Most of you were probably tracking this already but I wasn't. I retired at the end of 2019 and made a “bunch” my final year. Stimulus payments were based on 2019 income and DW and I didn't receive the $3600 that was sent out in 2020.

Ok.

Fast forward to 2020 taxes with a more modest line 11 taxable number and lo and behold, $3600 on the backend - tax credit/return.

Pleasant surprise.

$3600? Are you sure?

 

[Canoesmith]

$3600? Are you sure?

$1200 (first stim check) + $600 (second stim check) x 2 people.

 

[Out-to-Lunch]

$1200 (first stim check) + $600 (second stim check) x 2 people.

Okay, I misinterpreted something in your earlier post. Sorry.

 

[scrabbler1]

Most of you were probably tracking this already but I wasn't. I retired at the end of 2019 and made a “bunch” my final year. Stimulus payments were based on 2019 income and DW and I didn't receive the $3600 that was sent out in 2020.

Ok.

Fast forward to 2020 taxes with a more modest line 11 taxable number and lo and behold, $3600 on the backend - tax credit/return.

Pleasant surprise.

I had a similar income spike in late 2019 but my pleasant surprise was a little different from yours. I filed my 2019 tax return in mid-March so when they announced sending out checks in early April I was sure I wouldn't get one, expecting to have to file for it in my 2020 tax return. But, lo and behold, I got a check anyway, presumably because they somehow used my 2018 tax return (which showed a lower income), or maybe hadn't yet processed my 2019 return.

My too-big 2019 income has prevented me from getting the recent $600 check. However, my smaller 2020 income, along with an excess ACA premium subsidy (also made possible by a much smaller 2020 income), will be used to turn my usual tax owed (around $900) into a small refund, a most pleasant surprise.

 

[The Cosmic Avenger]

I've just gotten to the tax credit in TurboTax, and we're getting about $1500, I think, because I was out of work for part of 2020, so our income was lower than 2019.

 

[John Galt III]

My 2019 and 2020 incomes were nice and low, as usual, and I still didn't get the $600. The IRS website says 'status unavailable'. Will try to get it on my 2020 tax return as a refund (credit).

 

[VanWinkle]

My 2019 and 2020 incomes were nice and low, as usual, and I still didn't get the $600. The IRS website says 'status unavailable'. Will try to get it on my 2020 tax return as a refund (credit).

I didn't get the first one til late November 2020 and have not received the second one at this time.

 

[audreyh1]

My 2019 and 2020 incomes were nice and low, as usual, and I still didn't get the $600. The IRS website says 'status unavailable'. Will try to get it on my 2020 tax return as a refund (credit).

I think the IRS said ‘status unavailable’ means you’re not going to get it, so use the tax credit method.

 

[Golden sunsets]

I filed my deceased Mom's federal return through H&R block this morning. She received the 1st stimulus payment last year but did not receive her second stimulus payment. Going through the screens, line 30 of the 2020 return generated a $600 refund on her 2020 return.

 

[John Galt III]

I think the IRS said ‘status unavailable’ means you’re not going to get it, so use the tax credit method.

Thanks. Yes, that's right, Audrey. When I checked the IRS website a month ago, it said to check back later. But when I checked it a few days ago, it now says all the checks have now been mailed out, and if you haven't received one, use the 2020 tax form to get the $600.

 

[Sunset]

Now there is a new stimulus of $1,400
According to what I read it is per person the full amount if you make less than $75K/pp and phases out at $80K/pp

What hasn't been said is: based on which tax year ?
Aren't all 2020 forms are all done.
Or will we be able to include entry in 2021 tax year to get the $$ if no check is received ?

 

[Canoesmith]

Now there is a new stimulus of $1,400
According to what I read it is per person the full amount if you make less than $75K/pp and phases out at $80K/pp

What hasn't been said is: based on which tax year ?
Aren't all 2020 forms are all done.
Or will we be able to include entry in 2021 tax year to get the $$ if no check is received ?

I read this morning that if you’ve done your 2020 taxes already, it will be based on those. If not, 2019.

 

[Fermion]

The real hoot is you don't have to pay it back if you get it and really didn't qualify for it.

Say you made $60,000 in 2019 and $200,000 in 2020. As long as you were lazy and didn't file your 2020 taxes yet, you will get $1400 and not have to pay it back, unlike someone who made $100,000 in 2020 and filed in Feb.

And they say the early bird gets the worm LOL

 

[Sunset]

What happens if 2019 income is high, and 2020 income is low.
But taxes are not done yet ?

On the 2020 tax form, a person can fill out the previous stimulus numbers for the tax credit remaining.

But for this stimulus amount where is tax credit entry ? or will the 2020 tax form be updated and all the early filers have to do an amendment if they want the money ?

 

[scrabbler1]

What happens if 2019 income is high, and 2020 income is low.
But taxes are not done yet ?

On the 2020 tax form, a person can fill out the previous stimulus numbers for the tax credit remaining.

But for this stimulus amount where is tax credit entry ? or will the 2020 tax form be updated and all the early filers have to do an amendment if they want the money ?

I have high 2019 income but low 2020 income and filed my 2020 tax return a few weeks ago, hoping it will be processed prior to determining who gets a check. Otherwise, I would expect to see the money as a tax credit when I file my 2021 tax return early next year, using a worksheet similar to the one on page 59 in the 2020 instruction booklet. They won't change the 2020 filing instructions or the worksheet on page 59 to allow for the latest round of (upcoming) stimulus checks.

 

[The Cosmic Avenger]

Glad I got my 2020 taxes in, my AGI was much lower, we actually qualify for more than 50%, whereas we probably wouldn't qualify for anything based on our 2019 AGI.

 

[Finance Dave]

What happens if 2019 income is high, and 2020 income is low.
But taxes are not done yet ?

On the 2020 tax form, a person can fill out the previous stimulus numbers for the tax credit remaining.

But for this stimulus amount where is tax credit entry ? or will the 2020 tax form be updated and all the early filers have to do an amendment if they want the money ?

Sadly I think you're out of luck. It has been reported for a few weeks that this may happen, and it would have been wise to hurry up and get your accountant to file early...even if it meant paying a premium to them.

 

[Golden sunsets]

Sadly I think you're out of luck. It has been reported for a few weeks that this may happen, and it would have been wise to hurry up and get your accountant to file early...even if it meant paying a premium to them.

Where has this been reported? Could you cite a reference? I am in this boat. We don't prepare our own taxes. I have emailed our accountant twice, the latest time this morning, asking to speed up our returns and have not received a reply. We delivered our paperwork to him on 2/25, the day we received out brokerage 1099. I presume he is working on returns based on his receipt date, or he is concentrating on Sub S returns which are due March 15th. I have half a mind to ask for our paperwork back and do them ourselves, as they are pretty easy to do this year.

I think it is much more likely that folks are in the less in 2020 bucket, than less in 2019 bucket, as the pandemic was a 2020 event, so I find it inconceivable that those of us with qualifying 2020 returns, who didn't manage to file by this week, will just lose out? Really? I would expect a revolt if that were the case. I'd prefer the money now, but I had at least assumed that we would recoup it when filing our 2021 return(actually I assume we could reduce our 2021 withholding which we do in December from our RMD's), like we will for the two previous stimulus payments when we finally get our 2020 return filed. So my question is, can you provide a reference to where you have seen this written?

 

[Philliefan33]

I haven’t read anything to confirm this, so take it with a big grain of salt.

What I know: The amount of first two stimulus payments are ultimately dependent on your 2020 income. Since “they” wanted to get the money to people ASAP, the easiest way to determine how much to send was to use the most recently filed 1040. For some that was 2018, for others that was 2019. On the 2020 FIT forms the payments are reconciled to the 2020 income. If you got too much in stimulus payment, lucky you - no need to repay. If you received less that you were entitled to, the difference is given to you as a refundable credit on the 2020 FIT return.

What I am assuming: The third round of stimulus payments will also be ultimately based on 2020 income. There is the same desire to get checks out quickly, so payments will again be based on the most recently filed 1040. That may be 2019 or 2020. Then the reconciliation will happen when we file in 2021.

The timing of your 2020 return only matters if you had higher income in 2020 than 2019, that higher income is enough to phase out/negate the third stimulus payment, and you are trying to get the payment before the government figures out you aren’t entitled to it.

For everyone else, you will at some point get what you are entitled to — but it might not happen until 2021.

 

[Golden sunsets]

I haven’t read anything to confirm this, so take it with a big grain of salt.

What I know: The amount of first two stimulus payments are ultimately dependent on your 2020 income. Since “they” wanted to get the money to people ASAP, the easiest way to determine how much to send was to use the most recently filed 1040. For some that was 2018, for others that was 2019. On the 2020 FIT forms the payments are reconciled to the 2020 income. If you got too much in stimulus payment, lucky you - no need to repay. If you received less that you were entitled to, the difference is given to you as a refundable credit on the 2020 FIT return.

What I am assuming: The third round of stimulus payments will also be ultimately based on 2020 income. There is the same desire to get checks out quickly, so payments will again be based on the most recently filed 1040. That may be 2019 or 2020. Then the reconciliation will happen when we file in 2021.

The timing of your 2020 return only matters if you had higher income in 2020 than 2019, that higher income is enough to phase out/negate the third stimulus payment, and you are trying to get the payment before the government figures out you aren’t entitled to it.

For everyone else, you will at some point get what you are entitled to — but it might not happen until 2021.

That is my assumption as well. I have seen numerous comments encouraging those with qualifying income in 2020 to file quickly, which I get and wish I could comply, but nowhere have I seen any warning that we may miss out if we do not get that return in quickly, as Finance Dave suggested. Thus my request for his citation.

 

[scrabbler1]

I haven’t read anything to confirm this, so take it with a big grain of salt.

What I know: The amount of first two stimulus payments are ultimately dependent on your 2020 income. Since “they” wanted to get the money to people ASAP, the easiest way to determine how much to send was to use the most recently filed 1040. For some that was 2018, for others that was 2019. On the 2020 FIT forms the payments are reconciled to the 2020 income. If you got too much in stimulus payment, lucky you - no need to repay. If you received less that you were entitled to, the difference is given to you as a refundable credit on the 2020 FIT return.

What I am assuming: The third round of stimulus payments will also be ultimately based on 2020 income. There is the same desire to get checks out quickly, so payments will again be based on the most recently filed 1040. That may be 2019 or 2020. Then the reconciliation will happen when we file in 2021.

The timing of your 2020 return only matters if you had higher income in 2020 than 2019, that higher income is enough to phase out/negate the third stimulus payment, and you are trying to get the payment before the government figures out you aren’t entitled to it.

For everyone else, you will at some point get what you are entitled to — but it might not happen until 2021.

I bolded in 2 places the 2021 you wrote above. Did you mean to write "2022," referring to when we file our 2021 returns?

 

[PaunchyPirate]

I haven’t read anything to confirm this, so take it with a big grain of salt.

What I know: The amount of first two stimulus payments are ultimately dependent on your 2020 income. Since “they” wanted to get the money to people ASAP, the easiest way to determine how much to send was to use the most recently filed 1040. For some that was 2018, for others that was 2019. On the 2020 FIT forms the payments are reconciled to the 2020 income. If you got too much in stimulus payment, lucky you - no need to repay. If you received less that you were entitled to, the difference is given to you as a refundable credit on the 2020 FIT return.

What I am assuming: The third round of stimulus payments will also be ultimately based on 2020 income. There is the same desire to get checks out quickly, so payments will again be based on the most recently filed 1040. That may be 2019 or 2020. Then the reconciliation will happen when we file in 2021.

The timing of your 2020 return only matters if you had higher income in 2020 than 2019, that higher income is enough to phase out/negate the third stimulus payment, and you are trying to get the payment before the government figures out you aren’t entitled to it.

For everyone else, you will at some point get what you are entitled to — but it might not happen until 2021.

This is how I hope it will work as well, but I haven't found full confirmation in writing. Since I had a high income in 2019, but low in 2020 AND I can't file my income taxes until April due to a late K-1 form every year, I have yet to receive any stimulus. But that is set to be corrected once I finally do file for 2020. But by the time I file in April, I will have missed my opportunity to get in on timely payment of this most recent stimulus money. So I'm hoping it will also be reconciled when I file my 2021 return.

Thankfully, I don't need the money to survive. I plan on spending it in the local community anyway.

 

[Golden sunsets]

This is how I hope it will work as well, but I haven't found full confirmation in writing. Since I had a high income in 2019, but low in 2020 AND I can't file my income taxes until April due to a late K-1 form every year, I have yet to receive any stimulus. But that is set to be corrected once I finally do file for 2020. But by the time I file in April, I will have missed my opportunity to get in on timely payment of this most recent stimulus money. So I'm hoping it will also be reconciled when I file my 2021 return.

Thankfully, I don't need the money to survive. I plan on spending it in the local community anyway.

This is me too, although we don't receive a K-1, we haven't filed yet. Waiting on the CPA.