Stimulus direct deposit, checks and EIP cards.

[cathy63]

Quote:

Originally Posted by youbet Does anyone know if those folks not receiving any help will be notified of their ineligibility? Or is it likely to be a case of just assuming if you don't receive anything, you weren't eligible?

It seems very unlikely that they'll notify you if you're not eligible. The law does not require that. They are launching a website next week where you can check on the status of your rebate, so hopefully you'll be able to use that to figure out if you're not getting one.

[youbet]

Thanks cathy63.

It appears we won't receive anything as our 2018 AMT exceeded the top of the eligibility range and we haven't filed our 2019 return yet. But it would still be nice to eventually get something, similar to the annual IRMAA statement, that tells you the numbers they used to make their determination.

With no RMD requirement in 2020, it's likely we'll qualify for something when filing our 2020 takes in 2021 and I'd like to know for sure that the number they picked up for 2018 is the same as what I think it is.

Thanks for the heads-up on the web page coming next week!

[youbet]

Quote:

Originally Posted by SecondCor521 It's based on AGI, which is line 8b on the 2019 1040. If you've filed 2019, they'll use that. If you haven't filed 2019 but have filed 2018, they'll use that. If you don't qualify for the stimulus direct deposit based on 2019 or 2018, you may still qualify based on your 2020 AGI and can get the tax credit on your 2020 tax return.

Do I understand this correctly?

Since I haven't filed our 2019 taxes, they'll use our 2018 AMT for this round?

If my 2020 (RMD-free ) taxes qualify, I can get a credit when I file those in 2021?

That would mean my 2019 AMT is never used?

[Brat]

I am curious about how the income levels are calculated. DD earns well above the individual limit, SIL has earnings but well under. Together they are above. They live in a community property state. Will their income be tested separately? They have two children under the age of 16. Will they receive $ for them.

[Dtail]

On a semi related note, I filed my return on 02/27. It was a fairly simple return with a 1,603 refund.
Still waiting for it.

[USGrant1962]

Quote:

Originally Posted by Brat I am curious about how the income levels are calculated. DD earns well above the individual limit, SIL has earnings but well under. Together they are above. They live in a community property state. Will their income be tested separately? They have two children. Will they receive $ for them.

It just depends on how they filed Federal taxes - state is irrelevant. Did they Federal file jointly or separately?

[gear2th]

Mine is showing as pending, labelled "IRS TREAS 310 - TAX REF", and is consistent with my 2019 AGI, which was fortunately somewhat less than my 2018 AGI.

[Brat]

Quote:

Originally Posted by USGrant1962 It just depends on how they filed Federal taxes - state is irrelevant. Did they Federal file jointly or separately?

Jointly I am sure.

[SecondCor521]

Quote:

Originally Posted by youbet Do I understand this correctly? Since I haven't filed our 2019 taxes, they'll use our 2018 AMT for this round? If my 2020 (RMD-free ) taxes qualify, I can get a credit when I file those in 2021? That would mean my 2019 AMT is never used?

If you hold off on filing your 2019 taxes, then yes, they will look at your 2018 AGI (not AMT) to determine whether and how much of a stimulus direct deposit to pay you.

If your 2020 AGI is lower than your 2018 AGI, then you'll get the difference as a tax credit on your 2020 tax return when you file those about a year from now.

And yes, if you wait long enough to file your 2019 tax return, then your 2019 AGI (not AMT) will not be used.

[SecondCor521]

Quote:

Originally Posted by Brat I am curious about how the income levels are calculated. DD earns well above the individual limit, SIL has earnings but well under. Together they are above. They live in a community property state. Will their income be tested separately? They have two children under the age of 16. Will they receive $ for them.

It will be based on their 2019 AGI on line 8b of their 1040.

Assuming they filed MFJ in 2019 and had two kids under 17 at the end of 2019, then they would get $2400 for MFJ plus $500 for each of the two kids for a total of $3400. That $3400 would then be reduced by 5% of the extent to which their AGI exceeds $150K. So if their AGI was $180K, then they'd lose 5% of $30K or $1500. So they'd get $3400 - $1500 = $1900.

ETA: The above also assumes that they claim the two kids as their dependents, which is usually the case.

[PatrickA5]

Quote:

Originally Posted by CardsFan Does anyone know if the transfer will happen automatically if you PAID taxes with a transfer from a checking account (as opposed to getting a refund that way)? We normally owe, and for the last 2 years we have transferred money to the feds this way. Just curious. Everything I read is about refunds paid by transfer.

I read somewhere that yes they will use the same account that was used to direct debit a payment for taxes from.

[harley]

Quote:

Originally Posted by RetireBy90 We did a big Roth conversion last year, if they use AGI that includes that then we will be over the limit for a check. However, if they use 2018 we should be within the limits. Anyone have a link to how they will determine income levels ?

Procrastinators Club for the win! Those of us who haven't filed for 2019 yet will have our 2018 returns used to determine eligibility. Last year I had a lot of income, plus CG from a house sale and a small Roth conversion. But I haven't told the gov't about it yet, so they'll use our much smaller 2018 return and we'll get some free money to give away.

[iloveyoga]

Quote:

Originally Posted by harley Procrastinators Club for the win! Those of us who haven't filed for 2019 yet will have our 2018 returns used to determine eligibility. Last year I had a lot of income, plus CG from a house sale and a small Roth conversion. But I haven't told the gov't about it yet, so they'll use our much smaller 2018 return and we'll get some free money to give away.

I thought there was some kind of true up process that looked at your 2019 tax return also?

[Cobra9777]

Quote:

Originally Posted by CardsFan Does anyone know if the transfer will happen automatically if you PAID taxes with a transfer from a checking account (as opposed to getting a refund that way)? We normally owe, and for the last 2 years we have transferred money to the feds this way. Just curious. Everything I read is about refunds paid by transfer.

Quote:

Originally Posted by 54andchange ...My answer was to sign up via eftps.gov three weeks ago, just in case. They will snail mail you a PIN number, and will then officially have your bank info on file.

Quote:

Originally Posted by PatrickA5 I read somewhere that yes they will use the same account that was used to direct debit a payment for taxes from.

We always owe money with our return, including 2018 (haven't filed 2019 yet). So there was no bank info on the 2018 return to facilitate direct deposit of a refund.

But we paid the amount due with the 2018 return electronically using our bank info in Turbo Tax. And we pay every quarter using EFTPS. So the IRS very clearly has our bank info in their systems.

But everything I've read says the direct deposits will go to people who were due a refund in 2019 or 2018 and provided bank info on the return to facilitate direct deposit of the refund. According to the TurboTax coronavirus webpage....

Quote:

If you had a balance due, or if you opted to receive your refund by mail, the IRS will mail your stimulus check to the address on your return.

[bold is mine] If someone has a link with information to the contrary, please post.

[harllee]

If a person is receiving SS payment by direct deposit will the government use the SS direct deposit info for the stimulus payment?

[jollystomper]

Quote:

Originally Posted by harllee If a person is receiving SS payment by direct deposit will the government use the SS direct deposit info for the stimulus payment?

From the House Ways and Means Committee document:

Quote:

Shortly (hopefully within 10 days) after the first round of payments are made in mid-April, the IRS plans to make a second run of payments. These payments will be made to SS beneficiaries who did not file tax returns in 2018 or 2019 and receive their Social Security benefits via direct deposit. (The estimates are that nearly 99 percent of SS beneficiaries who do not file a return receive their SS benefits through direct deposit.)

[CardsFan]

Quote:

Originally Posted by Cobra9777 We always owe money with our return, including 2018 (haven't filed 2019 yet). So there was no bank info on the 2018 return to facilitate direct deposit of a refund. But we paid the amount due with the 2018 return electronically using our bank info in Turbo Tax. And we pay every quarter using EFTPS. So the IRS very clearly has our bank info in their systems. But everything I've read says the direct deposits will go to people who were due a refund in 2019 or 2018 and provided bank info on the return to facilitate direct deposit of the refund. According to the TurboTax coronavirus webpage.... [bold is mine] If someone has a link with information to the contrary, please post.

Sounds like we are both in the same boat. The IRS HAS our bank info, but it is not on a return.

I read your link to Turbotax, and did a little more searching. I am pretty sure we are destined for snail mail, though I will look at the new web-site that will be in action sometime next week.

We don't need the money, just want to make sure someone else doesn't get it by fraud or theft.

[audreyh1]

DF has always paid any taxes owed by check, although he receives his SS via direct deposit. We had already filed his 2019 taxes. I’m a bit confused as to how he will receive his payment.

Quote:

Originally Posted by jollystomper From the House Ways and Means Committee document:

That appears to only apply to SS recipients who do not file income tax returns.

The earlier quote:

Quote:

As of today, the latest estimated timing from the IRS on economic impact checks is as follows: The IRS will make about 60 million payments to Americans through direct deposit in mid-April (likely, the week of April 13th). The IRS has direct deposit information for these individuals from their 2018 or 2019 tax returns. This will include SSA beneficiaries who filed federal tax returns that included direct deposit information. Shortly (hopefully within 10 days) after the first round of payments are made in mid-April, the IRS plans to make a second run of payments. These payments will be made to SS beneficiaries who did not file tax returns in 2018 or 2019 and receive their Social Security benefits via direct deposit. (The estimates are that nearly 99 percent of SS beneficiaries who do not file a return receive their SS benefits through direct deposit.) About 3 weeks after the first round of payments are made (the week of May 4th), the IRS will begin issuing paper checks to individuals. The paper checks will be issued at a rate of about 5 million per week, which could take up to 20 weeks to get all the checks out. The checks will be issued in reverse “adjusted gross income” order—starting with people with the lowest income first.

So, DF did file taxes for both 2018 and 2019 but did not include direct deposit information, yet does receive SS via direct deposit.

Seems like he’s excluded from direct deposit?

[cathy63]

Quote:

Originally Posted by CardsFan Sounds like we are both in the same boat. The IRS HAS our bank info, but it is not on a return. I read your link to Turbotax, and did a little more searching. I am pretty sure we are destined for snail mail, though I will look at the new web-site that will be in action sometime next week. We don't need the money, just want to make sure someone else doesn't get it by fraud or theft.

We are in the situation of having had a refund in 2018 (due to getting most of our ACA premiums back) but having owed a bit in 2019. So the IRS does have our bank account info on our 2018 return, but they're not supposed to look at it if they already have our 2019 return. I guess that means we are expecting a paper check as well. Oh well, we're not in any rush for the money.

[Cobra9777]

Quote:

Originally Posted by CardsFan Sounds like we are both in the same boat. The IRS HAS our bank info, but it is not on a return. I read your link to Turbotax, and did a little more searching. I am pretty sure we are destined for snail mail, though I will look at the new web-site that will be in action sometime next week. We don't need the money, just want to make sure someone else doesn't get it by fraud or theft.

Exactly. I can easily envision millions of hackers/thieves/bots bombarding this new IRS portal next week and entering their own bank info to receive other people's stimulus payment. My SS# has been "in the wild" for years now. I'm guessing they will have to answer a few other security questions like "which of the following cars did you own in the last 5 years," which of course is readily available on websites like mylife.com. Random guesses will yield some success. So the sooner the better.