Stimulus $600

[Badger]

Checked my CU account and nothing yet. Maybe the "check is in the mail".


Cheers!

[DrRoy]

Ours hit Monday. For now it will delay when I need to transfer funds into the checking account.

[audreyh1]

I checked the IRS Payment site for the stimulus for DF's account.

And got the "Status not available" message for the 2nd stimulus. Got the correct info for the first stimulus. From what I read this means it's reconciled via his 2020 tax return.

CNBC reports that:

Quote:

And while many Americans have received their second stimulus payments as of Tuesday night, the IRS now says that people receiving the Payment Status #2 message on the Get My Payment tool will have to wait until they file their 2020 taxes to get the payment, even if they received the first stimulus check with no issues.

Apparently, DF who died in 2020 after receiving part of the first stimulus is still eligible for the second. The whole issue of who qualifies was apparently resolved to whomever did not die before Jan 1, 2020 due to how taxes are routinely handled for a deceased person in the year they die.

Quote:

A spokesperson for Grassley, the chief architect of the tax portion of the GOP’s plan, said lawmakers want to make the tax treatment of stimulus checks cohere with how the tax code normally treats the dead. “It’s consistent with ordinary tax rules for tax benefits and tax filing obligations” for the deceased, said Michael Zona. “In the year of death, one final regular tax return is due and all tax benefits are allowed regardless of when in the year the taxpayer died.”

https://www.politico.com/news/2020/0...-checks-391866

[street]

Quote:

Originally Posted by Gumby I think you are correct, although I note that as of the 1/4/21 update the H&R Block tax package does not do that.

So, not sure what you mean, but I go in person to H&R office to get my taxes done. You are saying they don't handle the stimulus tax event for my 2020 taxes

[Gumby]

Quote:

Originally Posted by street So, not sure what you mean, but I go in person to H&R office to get my taxes done. You are saying they don't handle the stimulus tax event for my 2020 taxes

Sorry for the confusion. I meant that the H&R Block computer program does not yet account for the Cares Act 2 payment that people are receiving now. That is, the Recovery Rebate Credit amount calculation in the program currently only takes into account the first $1200 per person payment that we either did not or only partially received last year. I expect they'll fix that soon in an update. I expect it's a little complicated because there is a different upper limit for the phaseout this time ($174k AGI for MFJ versus $198k last time).

[cathy63]

Quote:

Originally Posted by audreyh1 I checked the IRS Payment site for the stimulus for DF's account. And got the "Status not available" message for the 2nd stimulus. Got the correct info for the first stimulus. From what I read this means it's reconciled via his 2020 tax return. CNBC reports that: Apparently, DF who died in 2020 after receiving part of the first stimulus is still eligible for the second. The whole issue of who qualifies was apparently resolved to whomever did not die before Jan 1, 2020 due to how taxes are routinely handled for a deceased person in the year they die. https://www.politico.com/news/2020/0...-checks-391866

Yes, the bill specifically says that payments for taxpayers who are deceased prior to January 1, 2020 should be calculated "in the same manner as if the valid identification number of such person was not included on the return of tax for such taxable year", which, when you unwind it far enough, turns out to be a long-winded way of saying they get $0. Since they only excluded people who died prior to 2020, those who died during 2020 are eligible.

I had also noticed that the earlier draft of the 1040 instructions for calculating the recovery rebate would allow the estate of anyone who died during 2020 to claim the payment if they hadn't received it. There had been some confusion about what should happen for people who had died in Q1 before the first stimulus check was sent out.

[cathy63]

Quote:

Originally Posted by Gumby Sorry for the confusion. I meant that the H&R Block computer program does not yet account for the Cares Act 2 payment that people are receiving now. That is, the Recovery Rebate Credit amount calculation in the program currently only takes into account the first $1200 per person payment that we either did not or only partially received last year. I expect they'll fix that soon in an update. I expect it's a little complicated because there is a different upper limit for the phaseout this time ($174k AGI for MFJ versus $198k last time).

The 1040 draft instructions now include the second payment in the worksheet on page 59, which has expanded to cover a full page, so I'm sure H&R Block will implement it soon. https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

[bpgdeg1234]

Quote:

Originally Posted by cathy63 The 1040 draft instructions now include the second payment in the worksheet on page 59, which has expanded to cover a full page, so I'm sure H&R Block will implement it soon. https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

The second stimulus payment is based on your 2019 AGI as 2020 taxes have not yet been completed so you receive some payment as long as your AGI for 2019 is below the phaseout amount.

When you subsequently file your 2020 taxes the recovery tax credit is based on your 2020 tax form AGI but you don't have to pay anything you previously received even if your 2020 AGI is above the phaseout limit amount.

So the IRS recently indicated there is an issue that affected those who had filed their 2019 taxes through H&R Block and TurboTax in particular and says in general terms that some people may have to wait until they file their 2020 taxes to get the second stimulus payment, even if they received the first stimulus check with no issues.

So correct me if I'm wrong but if you don't get an advance stimulus payment that you may presently qualify for based on your 2019 AGI, if your 2020 AGI is higher and above the phase out level you won't qualify for any of the tax credit when you file your 2020 taxes?

[audreyh1]

Quote:

Originally Posted by bpgdeg1234 So correct me if I'm wrong but if you don't get an advance stimulus payment that you may have presently qualified for based on your 2019 AGI, if your 2020 AGI is higher and above the phase out level you won't qualify for any of the tax credit when you file your 2020 taxes?

I believe that is correct. For credit your 2020 AGI determines the amount.

[bpgdeg1234]

Quote:

Originally Posted by audreyh1 I believe that is correct. For credit your 2020 AGI determines the amount.

Thanks, that's very interesting...

[scrabbler1]

Quote:

Originally Posted by cathy63 The 1040 draft instructions now include the second payment in the worksheet on page 59, which has expanded to cover a full page, so I'm sure H&R Block will implement it soon. https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

Thanks for posting this. I didn't know the draft version had just been changed. I saw the worksheet which, for me at least, is pretty simple. My 2020 AGI is (far) less than the $75k max for full $600 EIP-2 benefit (for a single). So I can post a $600 amount on Form 1040, Line 30, and offset the amount I expect to owe and get a refund, as soon as I get all my other forms in the next 4-5 weeks.

[RobbieB]

We got our $1200 on 1-1-21. Wife spent it on 12-28-20.

[Walt34]

Quote:

Originally Posted by RobbieB We got our $1200 on 1-1-21. Wife spent it on 12-28-20.

Wow, she moves faster than light!

[sengsational]

Quote:

Originally Posted by Plantman I checked the IRS website (where's my payment) and it said ours is scheduled to be mailed on January 6. We got the first stimulus by direct deposit. I'm wondering why they chose to mail this one?

Just checked https://www.irs.gov/coronavirus/get-my-payment with Firefox and it gave an error. Checked with Chrome and it said the same thing...mailed January 6 (today). My last one was also mailed (never put my routing / account number on the IRS form).

[statsman]

Quote:

Originally Posted by RobbieB We got our $1200 on 1-1-21. Wife spent it on 12-28-20.

Taking a spending hit in 2020 to make 2021's income look better!

[mickeyd]

Got an amount substantially less than $1200 (600x2). I guess I will consider it a refund of my previously paid income tax. Thank you American people!

[bpgdeg1234]

Quote:

Originally Posted by sengsational Just checked https://www.irs.gov/coronavirus/get-my-payment with Firefox and it gave an error. Checked with Chrome and it said the same thing...mailed January 6 (today). My last one was also mailed (never put my routing / account number on the IRS form).

Thanks for update. Did the site indicate scheduled to be mailed Jan 6 (today) or was actually mailed today?

[street]

Quote:

Originally Posted by Gumby Sorry for the confusion. I meant that the H&R Block computer program does not yet account for the Cares Act 2 payment that people are receiving now. That is, the Recovery Rebate Credit amount calculation in the program currently only takes into account the first $1200 per person payment that we either did not or only partially received last year. I expect they'll fix that soon in an update. I expect it's a little complicated because there is a different upper limit for the phaseout this time ($174k AGI for MFJ versus $198k last time).

Thanks. I thought that was what you were referring too but I wanted to make sure. I do know the people here in my rural area at H&R don't seem to do some of the really technical tax issues that come up. That is why I was wondering.

Thanks so much I'm little slow when it come to some of this stuff.

[Koolau]

Quote:

Originally Posted by street Thanks. I thought that was what you were referring too but I wanted to make sure. I do know the people here in my rural area at H&R don't seem to do some of the really technical tax issues that come up. That is why I was wondering. Thanks so much I'm little slow when it come to some of this stuff.

I agree. I've never felt comfortable doing my own taxes. They have been and remain fairly complicated (I pay FED AND two different states!) Bummer, so worth what I pay which seems like a lot.

[street]

^ yes I could do my own and save some money but I can afford to have it done. I dislike dealing with taxes so I'm very happy to have someone else do them. I save other ways on things I do that some have to pay for. It doesn't cost me that much and I dont have to stress over doing them.