Stimulus-Will you save or spend it?

[audreyh1]

We don’t expect one.

That is missing from the poll.

 

[Teacher Terry]

I will use it to support my kids who are all out of jobs.

 

[audreyh1]

We'll send ours back to the Treasury...

We did our first "large" Roth conversion in 2019 (top of 22% bracket). So if it's based on 2018, we'll probably get a decent-sized check based on what I've read. If so, we'll use it to help pay the large tax bill due with our 2019 return in July.

All of our 2019 quarterly estimated payments were based on 2018 actual tax divided by 4 (safe harbor). So we owe a lot due to the conversion. And I'm not looking forward to selling stock any time soon. We have two pensions, dividends, and some rental income that cover basic, routine living expenses.

I answered "save." In effect, the check will increase our savings because we won't have to sell as much to cover our tax liability. We have no intention of spending more in this environment. We'll help those around us in whatever way we can as this crisis evolves.

Well at least you don’t have to pay it until 7/15.

 

[Chuckanut]

I will split it between needy relatives. Every penny.

 

[scrabbler1]

I will know more when I see my main bond fund's monthly dividend at the end of this month. If it takes a big hit, I will need some of the money to pay my April bills without dipping into my first-tier emergency fund, something I may boost by a few hundred dollars anyway.

 

[pacergal]

If we get any, we plan to give to DS and DD/SIL, who have both been laid off and will need help with bills.

 

[Dtail]

Is this income for 2019? I ask because the latest I hear is the 2019 tax filing or income from the previous year, 2018, will be used.

Latest I heard was that it is from the 2018 tax return.

 

[SeattleRocks]

I wont be getting one. Make too much $. I think its unfair, but it is what it is.

 

[Tiger8693]

I wont be getting one. Make too much $. I think its unfair, but it is what it is.

-1000

 

[gwraigty]

I’ve been reading restaurant forums, and this is going to be a bloodbath for restaurants no matter what relief they get. Sad, but lots of other businesses will be harmed as well, we all will to some extent.

The exit for everyone from current is going to be ugly, uneven, extended, chaotic, somewhat anarchic - and largely not in the hands of politicians. Cooperation will show limits.

Data point: DD was scheduled to work 37 hours this past week and has worked zero hours. Schedule was made out prior to the order to close dining in. Take out, contactless delivery, drive thru, are still available. Business was booming 2 weeks ago and they'd just hired a few new people. Within a couple of days of the first confirmed cases in Ohio, business dropped off about 90%, she estimates. Only 1 or 2 customers per hour.

Things will return to normal someday, but it's rough for a lot of people in the meantime.

 

[atmsmshr]

Is this income for 2019? I ask because the latest I hear is the 2019 tax filing or income from the previous year, 2018, will be used.

What I have seen (in one of the floating proposals being debated) is that if you have already filed for 2019 - that is the data used.

If you have not already filed for 2019 taxes - then 2018 is the default.

In one proposal, MFJ above $150,000 started a reduction, and no stimulus if income was above $198,000 MFJ. Won't know until the bill is signed and understood.

DW and I filed in early February - I was bored.

 

[Sunset]

Latest I heard was that it is from the 2018 tax return.

I know at least 1 person who doesn't file a tax return, as only gets SS.
I always advised to file just to make the IRS happy.

I guess that person won't get one.

 

[W2R]

I understand and agree with that singles with over $99k, couples with over $198k not getting anything (I'm one)

Is this the limit? If so I am eligible! I thought it was $75K for singles and if that is the level, then I'm outta luck.

As for what I will do with it, well, I'd order a ton of stuff from Amazon but they have been pretty much hosed lately. So, I'd probably deposit it in my bank account and just look at it fondly online every day.

With my Amazon "habit" essentially cut off, and being stuck in the house too, I have noticed that my spending has gone way down. Hopefully I will come out of this with low enough spending to help cushion the impact of what the stock market is doing to me.

 

[Tiger8693]

Is this the limit? If so I am eligible! I thought it was $75K for singles and if that is the level, then I'm outta luck.

Starts phasing out after $75k/$150k from what I have read, at a rate of 5% for every $100 over those limits.

 

[W2R]

Starts phasing out after $75k/$150k from what I have read, at a rate of 5% for every $100 over those limits.

Hot dog! Then I'll get a check, too.

 

[Dtail]

I know at least 1 person who doesn't file a tax return, as only gets SS.
I always advised to file just to make the IRS happy.

I guess that person won't get one.

What I have seen (in one of the floating proposals being debated) is that if you have already filed for 2019 - that is the data used.

If you have not already filed for 2019 taxes - then 2018 is the default.

In one proposal, MFJ above $150,000 started a reduction, and no stimulus if income was above $198,000 MFJ. Won't know until the bill is signed and understood.

DW and I filed in early February - I was bored.

Interesting.
My DGF did not file a return in 2018 due to SS only, but HAS already filed in 2019 due to Roth conversions.
We shall see.

 

[statsman]

What I have seen (in one of the floating proposals being debated) is that if you have already filed for 2019 - that is the data used.

If you have not already filed for 2019 taxes - then 2018 is the default.

Interesting. So, if they decide to go with the most recent tax year filing (2019 for us), then DW and I would qualify for the stimulus. If they decide on the 2018 tax year filing, we won't.

 

[jollystomper]

I will split it between needy relatives. Every penny.

+1

We are not impacted by this economically. We have relatives being laid off. We will just add it to our gift fund and give it out.

 

[Independent]

I will split it between needy relatives. Every penny.

+1

In our case, we probably won't split but will give it all to one who was on the edge financially before she lost her job.

 

[Major Tom]

Well, due to the whole "money is fungible" thing, it will be deposited into my checking account, and mingle with the other dollars and cents that seem to reside quite happily there.

One of my kitties was recently diagnosed with chronic kidney disease. The stimulus will go a long way towards covering the extra meds, bags of lactated Ringer's solution, sharps, and blood tests, to hopefully manage her condition somewhat.

I've been wanting a Berkey filter for a while now. When they announced that, due to the pandemic, they were out of stock of all filters, except their Travel Berkey, I decided to get one, as it was the exact model I've been wanting. The fact that a stimulus check could be on the way helped the decision, though I most likely would have gone ahead anyway. Funny how people are purchasing water filters, when the municipal water supplies are not under any threat. I've been wanting one for a while anyway - both for use at home, and in the campervan, as they are known for filtering out very close to 100% of all known pathogens.

I also have a good friend who, so far, is doing OK. Her employer closed the business, but is continuing to pay employees thru April 7th. They may continue to do this for a while, but are taking it week by week. There is a possibility she will be laid off and, if so, I'll help her out a bit in various ways. She will never be without a roof over her head, or food, as long as I'm around. I've helped her out before, and will do so again.

So, with all that in mind, it looks like the stimulus check will be doing a lot of stimulating

 

[Tiger8693]

For those celebrating they will get a check because they are just under the $75k-$99k and $150k-$198k limits and trying to figure "what to do with it". Consider giving it to this that need it (per my post #46)

 

[PatrickA5]

Not sure if we'll get anything. We did large Roth conversions in 2018 and 2019, so our income will probably be too high. If we get anything, we'll give it to our kids to help them out.

 

[gcgang]

Let’s see, I’ve lost a million or two. Now I get $1,000. I’ll definitely use it to rebuild my investments. Hahaha.

 

[scrabbler1]

Interesting. So, if they decide to go with the most recent tax year filing (2019 for us), then DW and I would qualify for the stimulus. If they decide on the 2018 tax year filing, we won't.

It would be the reverse for me. My 2019 AGI is a hair under $100k while my 2018 AGI was $53k. Should those of us who already filed our 2019 returns be punished for our diligence?

 

[W2R]

For those celebrating they will get a check because they are just under the $75k-$99k and $150k-$198k limits and trying to figure "what to do with it". Consider giving it to this that need it (per my post #46)

I don't plan to allow a stimulus check to affect how much I give to those in need, one way or the other. And that goes for the possibility of NOT getting a stimulus check; I wouldn't give less to those in need if I don't get a check.