Stimulus $600

[Gumby]

In H&R Block, where in the interview are the stimulus questions? I'll admit to not looking. Haven't even downloaded the latest update.

It's in the "Credits" tab, first item -- "Recovery Rebate (Economic Stimulus) Credit"

 

[1242Vintage]

No sign of stimulus funds yet.

I suspect that a recently discovered and corrected accounting error on the IRS side with our 2019 tax return ... IRS didn’t properly record and credit two of our quarterly payments causing our account to reflect a “balance due” ... is causing a delay.

Hope it’s only a delay. Want to use stimulus to shop local and help small businesses in town a little more.

 

[ExFlyBoy5]

Will there be another stimulus check coming now for 2000 or 1400 or nothing at all?

I am still waiting or my crystal ball to tell me what TSLA is going to do, but I have the request in queue. Nonetheless, if I was a betting man (and maybe I am since I do hold some TSLA) I would say the odds are pretty favorable for additional stimulus funds in the near future.

 

[Badger]

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


Cheers!

Well what do you know. The check was in the mail. The modified amount came in yesterday.



Cheers!

 

[carnivalday]

Pleasantly surprised to get my check yesterday. Ill file for the first stimulus check when I do my taxes, since I didnt receive that one.

 

[wallygator69]

Got ours but there are issues with Republic bank

Howdy,


Got our $1200 few days ago direct deposit same as last time.


My Accountant sent a notice about Republic bank issue.....Assume others maybe..



Good Luck

Walter:
On January 4th, 2021, Liberty Tax was informed that the IRS sent funding for stimulus payments to Republic Bank for customers that had used a Refund Transfer product last season and chose a check option for disbursement. Those accounts were in a closed status and by law, the bank was required to return them to the IRS. Some customers elected electronic deposit or direct deposit from this account and received the funding from the IRS, because the ultimate bank account (the taxpayer's bank account) was still open and active. Since Tuesday, January 5th, 2021, we have been working non-stop, pleading with the bank and the IRS to re-open those accounts and send those deposits back, and allow us to print checks in our local offices, at no charge to our clients.
For two days both the bank and the IRS have been contemplating our recommendation, I am pleased to let you know Republic Bank has agreed to work through the logistics of doing this, however, I was notified at 2:30PM CST the IRS will not re-submit the deposits. Because of the IRS's decision, we are unable to fulfill any check issuance for the stimulus payment at this time.
Some banks did not return the money to the IRS, and still may be able to direct funds into an ultimate bank account for the customer. Unfortunately, Republic Bank is not one of them, and they are our partner bank.
We have been communicating to customers since yesterday as we tried to identify just what was happening and what was going to happen and how we could help customers. For many of you, it wasn't enough or timely enough. I am truly sorry. This has been a difficult situation to manage through and we are doing our best. Information has come fast, furious and inaccurately from the IRS, so we just didn't know what to disseminate as it is changing intra-hourly.
None of that gets you your payment today. With this communication, we hope to help you solve that problem. The latest IRS guidance is clear for those taxpayers who did not receive their stimulus payments. The very first thing you should do is go to the IRS website by clicking below and use the "Get My Payment" tool to determine your status.

https://www.irs.gov/coronavirus/get-my-payment​

1. If GMP reflects a direct deposit date and partial account information, then your payment is deposited there.
2. If GMP reflects a date your payment was mailed, it may take up to 3 - 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card. (See the FAQ for EIP Card by clicking HERE.)
3. If GMP shows "Payment Status #2 - Not Available," then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.

If you are one of the millions of customers who will not get a direct stimulus deposit, I want to provide a nationwide offer to come to a local Liberty Tax office for a FREE, NO OBLIGATION STIMULUS CONSULTATION. Even if you have chosen to go elsewhere, we feel the best we can do for our customers is to provide this service.

​

All stimulus payments were intended to be in homes no later than January 15th, 2021. At this point, if you do not get your stimulus payment by the end of this week, you will have to include it in your 2020 Tax Return as Rebate Recovery Credit. It is a terrible outcome and one that I am continuing to advocate against with the IRS, but so far this has fallen on deaf ears. I have asked the IRS to issue checks directly to the taxpayer and have received a negative response. I will continue to advocate for you, our client, taxpayer and fellow American. I am truly sorry we don't have better news to share at this time. Should there be a change in status, as I intend to help bring about, we will quickly update you.
Sincerely,

Brent Turner
CEO

 

[sengsational]

It's in the "Credits" tab, first item -- "Recovery Rebate (Economic Stimulus) Credit"

Thanks. I got the update to the tax software and it's pretty simple. The "mini-worksheet for line 30, recovery rebate credit" just makes sure you're eligible, and for what amount, then subtracts any amount you got in 2020. And nothing to to with the "by January 15th payment" as far as I can tell.

I'll admit to not paying all that much attention, but I somehow thought the current stimulus payments had something to do with 2020 taxes.

 

[PaunchyPirate]

I'll admit to not paying all that much attention, but I somehow thought the current stimulus payments had something to do with 2020 taxes.

The stimulus payments that started going out at the end of December AND the payments from earlier in the year will BOTH be reconciled on the 2020 tax returns due on April 15th.

 

[cathy63]

My Accountant sent a notice about Republic bank issue.....Assume others maybe...

This is a problem for many people who use the "refund transfer" option that's offered by a lot of different accounting firms and software companies in partnership with various banks. Basically the tax preparer sets up a temporary bank account and puts that account number on the tax return. When the IRS deposits the refund, the preparer's company subtracts its fees and then issues a check or prepaid debit card to the client before closing the account. It's a popular option for the unbanked and those who can't afford to pay tax prep fees in advance; so this is mostly hurthing the very low income people who need the stimulus payments the most.

The IRS had this same issue with the first stimulus payments, and I they know which accounts are for transfers, so the problem is at least partly on them.

 

[Al in Ohio]

Change of plans. Our 12 year old Samsung fridge died so our combined $1,200 in stimulus money will go to buy a new LG fridge.

 

[audreyh1]

Thanks. I got the update to the tax software and it's pretty simple. The "mini-worksheet for line 30, recovery rebate credit" just makes sure you're eligible, and for what amount, then subtracts any amount you got in 2020. And nothing to to with the "by January 15th payment" as far as I can tell.

I'll admit to not paying all that much attention, but I somehow thought the current stimulus payments had something to do with 2020 taxes.

Yes, they are all reconciled on your 2020 taxes.

 

[SecondCor521]

Thanks. I got the update to the tax software and it's pretty simple. The "mini-worksheet for line 30, recovery rebate credit" just makes sure you're eligible, and for what amount, then subtracts any amount you got in 2020. And nothing to to with the "by January 15th payment" as far as I can tell.

I'll admit to not paying all that much attention, but I somehow thought the current stimulus payments had something to do with 2020 taxes.

The "by January 15th payment" is indeed on the worksheet for Form 1040 line 30. In the IRS instructions, the worksheet on page 59 has it on line 8 (out of 21) and refers to it as "EIP2". You might also see reference to Form 1444-B, which is the notice of payment that you get telling you how much your EIP2 amount was.

If your tax software update is not yet making reference to two different EIPs, I would wager that you should check for another update and not file until you get a worksheet or data input screen with 2 EIPs on it.

 

[lemming]

Those people who used online software and had their fees paid out of the refund amount are screaming now because the IRS is sending the $$ to the "green card" people. The IRS is telling them they sent the money to Turbotax. Screams ensued. Both Santa Barbara bank and Turbotax are denying responsibility. What a mess

 

[sengsational]

...
If your tax software update is not yet making reference to two different EIPs, I would wager that you should check for another update and not file until you get a worksheet or data input screen with 2 EIPs on it.

The early January update only makes reference to one. Another update is scheduled for 1/20. Thanks, all, for putting up with my ignorance.

 

[SecondCor521]

I wouldn't want to be the programmers and QA people putting that software together at the last minute under time pressure. I'm sure they have well developed tools and processes in place to help with their speed and accuracy. But having done that sort of work in my career in a less time-critical context, I wouldn't want to be in their shoes. One missed line number, one negative sign, one missed condition, and if it's anywhere near common, you later get to deal with helping 3,678 people file a Form 1040-X for the trouble you caused them, and probably for free. I guess that's an incentive to get it right the first time around. Thankfully the IRS doesn't ever change their rules or guidance or interpretation of tax law (ha!).

 

[Golden sunsets]

I wonder how the methods of claiming the credit on a 2020 tax return will change if the new Congress quickly passes the proposed expanded stimulus payments($2,000) as is being forecast by the new administration. If the legislation is passed as quickly as planned, the 2020 return instructions might be further revised to provide for the larger credit.

 

[audreyh1]

I wonder how the methods of claiming the credit on a 2020 tax return will change if the new Congress quickly passes the proposed expanded stimulus payments($2,000) as is being forecast by the new administration. If the legislation is passed as quickly as planned, the 2020 return instructions might be further revised to provide for the larger credit.

Seems like any additional stimulus passed in 2021 will ultimately apply against your 2021 return.

 

[calico1597]

My grandson, age 19, did not apply for the first stimulus check or file any taxes. He went to welding and pipefitting school in 2019 after graduating high school. His parents told him since he didn't file or pay any taxes that he wasn't entitiled to the $1200. I think otherwise, told the parents, but what do I know? So he's not going to the the $600 this time either most likely. Isn't he entitled to both?

 

[Gumby]

Is he filing taxes for 2020? If yes, the total of $1800 is a refundable tax credit that he can get now.

 

[calico1597]

Yes, he did work and pay taxes in 2020. Will that be an automatic refund to him?

 

[Gumby]

Yes, he did work and pay taxes in 2020. Will that be an automatic refund to him?

It's a refundable credit against taxes paid in 2020. So, if you assume his paycheck withholding equals his tax due, he'll still get an $1800 refund. (i.e. -- You add $1800 to his tax paid in 2020)

 

[SecondCor521]

Yes, he did work and pay taxes in 2020. Will that be an automatic refund to him?

It won't be automatic, but if he files his taxes correctly he should see $1800 listed on line 30 of his Form 1040.

The main stumbling block would be whether or not his parents could claim him as a dependent in 2020 - it sounds like they probably cannot if he turned 19 in 2020 and was not a full time student.

(If he were claimable as their dependent, then he would not be entitled to $1800, and his parents couldn't get one for him either since he's over 17.)

 

[skipro33]

The "by January 15th payment" is indeed on the worksheet for Form 1040 line 30. In the IRS instructions, the worksheet on page 59 has it on line 8 (out of 21) and refers to it as "EIP2". You might also see reference to Form 1444-B, which is the notice of payment that you get telling you how much your EIP2 amount was.

If your tax software update is not yet making reference to two different EIPs, I would wager that you should check for another update and not file until you get a worksheet or data input screen with 2 EIPs on it.

It's not on the H&R Block tax software that way. The mini worksheet for line 30 is for $2,400 only.
Step e; Enter $1,200 ($2,400 if filing jointly)---This step establishes how much rebate you may be eligible for. I left out the steps for kids and AGI calcs.
Step m; did you get an economic stimulus payment in 2020? If yes, enter in line m.----This step establishes the amount you received in stimulus based on the amount you are eligible for as calculated above.
Step n; Recovery rebate credit.---This step establishes the difference between what you got and $2,400. If I put down I got nothing, then this box is populated with $2,400.

For the above steps, I played and entered $2,400 and step n/line n was zero. If I changed that to $1,200, then line n was $1,200. The combination of m and n, what I received and what I would get for credit always added to $2,400.
So the 2nd stimulus, the $600 per person, is not on the 2020 taxes according to H&R Block software.

I understand that this should likely get updated at some point before the final allows me to file my taxes. BUT, since I already went through these steps, an update wouldn't trigger me to have even checked. I will now because of what was posted here, but most likely if I were not a member of this site, I would have only done the first stimulus and not the 2nd.

BTW, if I don't claim I got the $2,400, my taxes change from owing $1,964 to a refund of $436. That means the credit gets applied to owed taxes. They do not keep the stimulus separate as a payment from your taxes owed.

One last thing; H&R Block software says the next update will be January 20th.

 

[SecondCor521]

It's not on the H&R Block tax software that way. The mini worksheet for line 30 is for $2,400 only.
Step e; Enter $1,200 ($2,400 if filing jointly)---This step establishes how much rebate you may be eligible for. I left out the steps for kids and AGI calcs.
Step m; did you get an economic stimulus payment in 2020? If yes, enter in line m.----This step establishes the amount you received in stimulus based on the amount you are eligible for as calculated above.
Step n; Recovery rebate credit.---This step establishes the difference between what you got and $2,400. If I put down I got nothing, then this box is populated with $2,400.

For the above steps, I played and entered $2,400 and step n/line n was zero. If I changed that to $1,200, then line n was $1,200. The combination of m and n, what I received and what I would get for credit always added to $2,400.
So the 2nd stimulus, the $600 per person, is not on the 2020 taxes according to H&R Block software.

I understand that this should likely get updated at some point before the final allows me to file my taxes. BUT, since I already went through these steps, an update wouldn't trigger me to have even checked. I will now because of what was posted here, but most likely if I were not a member of this site, I would have only done the first stimulus and not the 2nd.

BTW, if I don't claim I got the $2,400, my taxes change from owing $1,964 to a refund of $436. That means the credit gets applied to owed taxes. They do not keep the stimulus separate as a payment from your taxes owed.

One last thing; H&R Block software says the next update will be January 20th.

Right. H&R Block needs to update their software. They're a good company and it's an obvious thing, so I'm sure they'll do so in the next week or so.

And yes, the recovery rebates will be applied to any taxes owing first and then any excess would become a refund to you.

 

[skipro33]

Right. H&R Block needs to update their software. They're a good company and it's an obvious thing, so I'm sure they'll do so in the next week or so.

And yes, the recovery rebates will be applied to any taxes owing first and then any excess would become a refund to you.

Thanks. And BTW, the reason I owe $1,964 is because my wife filed for her SS in November and had it backdated to her birth month of February. SS paid a single payment through December. So 9 months worth all in one lump sum. SS did not take deductions. I did file to have the penalty removed because of the unequal monthly payments and the lump sum at the end of the year. It was only $24, not a big deal, but still, worth the paper work to get the penalty pulled.