Stimulus direct deposit, checks and EIP cards.

[jj]

Quote:

Originally Posted by Redbugdave There will be a lot of scams with this free handout.

oh yes...

[frank]

do you think the stimulus checks will be taxable? just want to know what people think?

[jpeter1093]

Quote:

Originally Posted by frank do you think the stimulus checks will be taxable? just want to know what people think?

They shouldn't be since they are an advance on next year's refund, if I understand correctly.

[REWahoo]

Quote:

Originally Posted by frank do you think the stimulus checks will be taxable?

No.

Quote:

Will the Money I Get Now Be Taxed Later? No. As we mentioned earlier, the check you receive is really just an advanced payment of a tax credit for the 2020 tax year. As such, it won't be included in your taxable income.

https://www.kiplinger.com/article/sp...ther-faqs.html

[GalaxyBoy]

Hat we “think” isn’t as relevant as what “is.” The payment is not taxable.

https://money.com/stimulus-check-advance-tax-refund/

[aaronc879]

My $1200 is listed as pending and will be in my account on the 15th.

[W2R]

Quote:

Originally Posted by aaronc879 My $1200 is listed as pending and will be in my account on the 15th.

Wonderful! I am so happy for you.

Mine is still not listed, even as pending, so I'll just have to be patient for a while longer.

[JPatrick]

Quote:

Originally Posted by W2R Wonderful! I am so happy for you. Mine is still not listed, even as pending, so I'll just have to be patient for a while longer.

When you say "listed," where exactly is the checks status listed. TIA

[aaronc879]

Quote:

Originally Posted by JPatrick When you say "listed," where exactly is the checks status listed. TIA

Your bank account. Mine is listed as pending with a deposit date of the 15th. So it's "listed" in your bank account transactions. Maybe not all banks/credit unions do that but my CU does.

[JPatrick]

Quote:

Originally Posted by aaronc879 Your bank account. Mine is listed as pending with a deposit date of the 15th. So it's "listed" in your bank account transactions. Maybe not all banks/credit unions do that but my CU does.

Ah the bank. Never seen a pending anything. Guess I don't have the delux account..sigh

[RAE]

Quote:

Originally Posted by aaronc879 My $1200 is listed as pending and will be in my account on the 15th.

Mine is shown as pending also in my CU checking account. Should be posted either later today or tomorrow, I would guess.

[harley]

Quote:

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

Quote:

Originally Posted by harley Hadn't seen that. I'll have to check it out. Thanks.

So, I did check it out. I know this isn't totally authoritative, but in this article from Kiplingers, it says that they haven't decided whether to "true it up" from your 2019 taxes.

Quote:

There's an opportunity to manipulate the amount of your stimulus check if you haven't already filed your 2019 return.

Quote:

If you get a higher amount using your 2018 return, wait to file. If the amount is better using 2019 numbers, then file as soon as you can

Quote:

Let's say you wait to file your 2019 return because your stimulus check will be $100 more if the IRS bases your payment on your 2018 return. Will you get to keep that additional $100? That's still an open question. The way the law is written, the checks that will be sent now are actually just advanced payments of a new refundable tax credit for the 2020 tax year. We don't know yet how the IRS will treat stimulus payments that are more than the 2020 tax credit amount.

Quote:

If we had to guess, we don't think the IRS will require a payback. Nevertheless, we'll keep an eye out for IRS guidance addressing this situation, so check back later.

Sorry for all the chunks of quotes, just trying to winnow down the wordiness.

[SecondCor521]

Whomever wrote the article for Kiplinger's needs better reading comprehension (or CPA friends with reading comprehension).

The text of the law is quite clear that stimulus payments that are larger than the 2020 credit amount will not have to be repaid. The wording is something along the lines of: "Your 2020 credit will be reduced by your stimulus payment, but not below zero."

[N02L84ER]

My credit union is showing the stimulus amount is pending. Looks like I can start adding a much larger tip on our carry-out orders.

[joecan5785]

I am not collecting SS and just have dividend income. I do file, but I owe nothing and get nothing from the federal government, just always have to pay state. I would still be entitled to a check, correct?

Thanks

[Southern Geek]

Logged onto my CU account this morning to pay some bills, and discovered $2400 of stimulus deposited to my account by IRS. Now, DW and I are trying to decide how to distribute it to those who need more than us.

[SecondCor521]

Quote:

Originally Posted by joecan5785 I am not collecting SS and just have dividend income. I do file, but I owe nothing and get nothing from the federal government, just always have to pay state. I would still be entitled to a check, correct? Thanks

Almost certainly. The main requirements are (1) have an SSN, (2) have an AGI under $75K single, and (3) not be eligible to be claimed as a dependent on someone else's return.

[Hermit]

I just got mine! I'm sooo excited! I think I will take the entire extended family out to dinner!


Oh, wait. Never mind on the dinner.


It was direct deposited into the same account that gets my SS check and my tax refund check.

[Hermit]

Quote:

Originally Posted by SecondCor521 Whomever wrote the article for Kiplinger's needs better reading comprehension (or CPA friends with reading comprehension). The text of the law is quite clear that stimulus payments that are larger than the 2020 credit amount will not have to be repaid. The wording is something along the lines of: "Your 2020 credit will be reduced by your stimulus payment, but not below zero."

What?? You mean this is NOT free money??
BTW, what is a "credit amount?"

[Gumby]

Quote:

Originally Posted by Hermit What?? You mean this is NOT free money?? BTW, what is a "credit amount?"

The amounts currently being sent out are advance payments of a tax credit to be applied to your 2020 tax obligation. The amount you get now is determined by either your 2018 or 2019 AGI, but the ultimate amount of your credit will be determined by your 2020 AGI. Consider the two extreme cases: 1) you had greater than $198,000 AGI in 2019 (MFJ), so you get nothing now, but you have less than $150,000 AGI in 2020, so you get a $2400 tax credit when you file next year; and 2) You had less than $150,000 AGI in 2019, so you get $2400 now, but you have greater than $198,000 AGI in 2020, so you are ineligible for any tax credit when you file next year. In case 2, you do not need to pay it back.