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Old 03-20-2021, 11:42 AM   #41
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<mod note> Multiple posts deleted that were snarky or getting into politics. Please keep the discussion focused on how this affects us as individuals and what actions we should consider.
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Old 03-20-2021, 01:40 PM   #42
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FYI there is IRS guidance that an amended return is not necessary for the unemployment exemption passed.
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Old 03-20-2021, 02:33 PM   #43
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Here's a question for the wisdom here....

For 2020 tax year, Older son filed as independent (it was borderline, and 2020 stimulus pushed it that way.) He works full time, pays bills, and even though he lives at home, he contributes monthly to the household expenses. Previous years he was listed as a dependent on our taxes. Our 2020 taxes filed also reflected that he was no longer a dependent in 2020.

Stim showed up in our account that included him. He did not get a stim payment (though did receive his refund several weeks earlier.).

So - how to resolve this. I assume when he files in 2022 for 2021, he can claim that he didn't receive it and get it applied to his refund. I assume when we file in 2022, for 2021, we will report the overpayment, and owe the money. Do we need to do anything before this? I'm happy to pay it back now - but haven't figured out how to do so.

Anyone know of a way to resolve this before next year when we file our taxes?
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Old 03-20-2021, 02:47 PM   #44
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Quote:
Originally Posted by rodi View Post
Here's a question for the wisdom here....

For 2020 tax year, Older son filed as independent (it was borderline, and 2020 stimulus pushed it that way.) He works full time, pays bills, and even though he lives at home, he contributes monthly to the household expenses. Previous years he was listed as a dependent on our taxes. Our 2020 taxes filed also reflected that he was no longer a dependent in 2020.

Stim showed up in our account that included him. He did not get a stim payment (though did receive his refund several weeks earlier.).

So - how to resolve this. I assume when he files in 2022 for 2021, he can claim that he didn't receive it and get it applied to his refund. I assume when we file in 2022, for 2021, we will report the overpayment, and owe the money. Do we need to do anything before this? I'm happy to pay it back now - but haven't figured out how to do so.

Anyone know of a way to resolve this before next year when we file our taxes?
There is a second checkpoint between July 15th and September 1st where the IRS will check for taxpayers like your son, so he may receive his stimulus payment then.

If he doesn't get it then, he can get it via the Recovery Rebate Credit on his 2021 return which he will file about a year from now.

Your assumption is incorrect - you will not be obligated nor legally required to repay the stimulus payment which you received for him (which was probably based on your 2019 tax return that listed him as a dependent). You neither need to repay it now nor later.
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Old 03-20-2021, 06:45 PM   #45
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Thanks for your quick response.

Quote:
Originally Posted by SecondCor521 View Post
Your assumption is incorrect - you will not be obligated nor legally required to repay the stimulus payment which you received for him (which was probably based on your 2019 tax return that listed him as a dependent). You neither need to repay it now nor later.
Wow!!! That doesn't seem right.... I will put the money aside, just in case.
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Old 03-20-2021, 07:09 PM   #46
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Quote:
Originally Posted by rodi View Post
Thanks for your quick response.

Wow!!! That doesn't seem right.... I will put the money aside, just in case.
If you search this long article for the word "clawback", you'll find this:
Quote:
One critically important planning consideration is that the ‘Checkpoints’ described above represent a one-way opportunity to increase the amount of a taxpayer’s 2021 Recovery Rebate Credit.
Any amounts correctly paid based on the taxpayer’s income on file with the IRS at the time of payment can be kept by the taxpayer. There is no clawback on a taxpayer’s 2021 tax return of previously paid 2021 Recovery Rebate amounts, even if the taxpayer’s 2021 income is high enough to completely phase them out of receiving such credit. Which makes it especially important for those with income that was lower in 2020 to ensure they file in time to satisfy Checkpoint 2 (by the earlier of 90 days after their tax filing deadline, or September 1st, but not by just waiting until the latest possible due date for their extension!).
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Old 03-20-2021, 07:10 PM   #47
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Quote:
Originally Posted by rodi View Post
Thanks for your quick response.



Wow!!! That doesn't seem right.... I will put the money aside, just in case.
:shrug: Suit yourself.

Here's the relevant text from Section 9601 of the American Recovery Plan Act (https://www.congress.gov/bill/117th-...bill/1319/text):

"‘‘(f) COORDINATION WITH ADVANCE REFUNDS OF CREDIT.—
‘‘(1) REDUCTION OF REFUNDABLE CREDIT.—The amount of the credit which would (but for this paragraph) be allowable under subsection (a) shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (g)."

(Emphasis added by me.)

You can also google and find the same information stated in quite a number of news articles.
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Old 03-20-2021, 07:36 PM   #48
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Thanks for the info. I really appreciate it.
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Old 04-01-2021, 09:42 AM   #49
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Just wondering if anyone has heard any more news with regard to how the implementation of the ACA changes in this law is being implemented.

In particular:

- Changes in 2021 ACA Subsidies - especially on the state exchanges (I'm in NJ which has a state exchange) - do you need to take action to get the new subsides or does it happen auto-magically?

- Refunds of "clawback" from 2020, for those that already filed 2020 taxes?

Thanks
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Old 04-01-2021, 10:33 AM   #50
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The only statement the IRS has made so far is "We’re reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. Taxpayers who filed a 2020 tax return and reported an excess advance premium tax credit repayment on Line 29 of Form 8962, Premium Tax Credit, should not file an amended tax return only to get a refund of this amount. The IRS will provide more details soon. For the latest updates, check IRS.gov/coronavirus."

https://www.irs.gov/affordable-care-...ium-tax-credit
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