Stimulus Payment Calculator

[Midpack]

https://www.omnicalculator.com/finance/stimulus-payment

We’d have gotten a check for $2400 if I hadn’t already filed for 2019 with a very large Roth conversion. So we’ll get $0, and we’re OK with that.

 

[REWahoo]

We’d have gotten a check for $2400 if I hadn’t already filed for 2019 with a very large Roth conversion. So we’ll get $0, and we’re OK with that.

And the moral to the story is: "He who hesitates [-][-]is lost[/-][/-] gets in on the govt dole."

Who knew?

 

[Ready-4-ER-at-14]

Interesting that if you are slightly over the limit you still get something back per that calculator. Ie filing jointly and say 155k you still get something back and not 0.

 

[REWahoo]

Interesting that if you are slightly over the limit you still get something back per that calculator. Ie filing jointly and say 155k you still get something back and not 0.

I understand it starts phasing out above $150k, going to 0 above $198k (filing jointly).

 

[Midpack]

Not my intent by any means, but a way to game the system if you haven’t already filed for 2019...let your conscience be your guide?

 

[foxfirev5]

I thought it is a refundable credit on your 2020 taxes. Even if you don'y receive a check based on 2018 or 2019 income you be able to receive a credit when you file for 2020. However I'm way too busy to look it up. Actually my internet is currently at 1998 speeds. Maybe its because of all the online schooling. :0

 

[PatrickA5]

We will get $1,940 (out of $2,400) due to being slightly over the limit. I wonder if we'll get the other $460 when we file 2020 taxes (if we're under the limit)?

We'll give ours to our kids. DS is probably going to graduate college without a chance of getting a decent job. Rotten luck. Oldest daughter graduated in 2009. Should have planned better when having kids.

 

[Chuckanut]

Latest info is - For every $1000 over 75K you get $50 off your payment.

 

[statsman]

https://www.omnicalculator.com/finance/stimulus-payment

We’d have gotten a check for $2400 if I hadn’t already filed for 2019 with a very large Roth conversion. So we’ll get $0, and we’re OK with that.

Exact opposite for us. We exceeded the limit in 2018 because of taxable capital gains on a house sale that year. But we filed for the 2019 tax year last month, and we were well under the limit in 2019. Still, having SS and pension income along with other income should have been reasons not to receive a stimulus payment.

 

[travelover]

What are the net tax implications of the payment? I plan to donate it, but will hold back any taxes.

 

[Ian S]

We haven't filed yet but if we had we'd get the full amount $2400, but based on 2018 taxes, we'll get about $1800. Should I rush to file or will their records not be updated in time?

 

[Major Tom]

Interesting that it seems to be based on AGI, and not earned income. I guess that's good news for us retirees. I echo travelover's question, and am wondering if the stimulus payment will affect my AGI.

 

[PatrickA5]

We haven't filed yet but if we had we'd get the full amount $2400, but based on 2018 taxes, we'll get about $1800. Should I rush to file or will their records not be updated in time?

I doubt it. I filed (by mail) my son's taxes this morning hoping they process it in time. He didn't file 2018.

Question: If someone doesn't get a check because they didn't file in 2018 or 2019 but they do qualify in 2020 - will they get the $1,200 payment in a refund when they do their 2020 taxes?

 

[Fermion]

Our 2018 AGI was over $250,000 because of the biotech trades I made.

2019 i already filed and our AGI should allow us to get the $2400 according to that calculator.

 

[REWahoo]

Midpack, this looks like you may still get the payment:

If a taxpayer’s previous tax returns put them above the income threshold, but in the coming year they will make below that limit, York said the IRS will apply the rebate next tax season. “They’ll be made right when they file their 2020 tax return,” York said.

On the flip side, suppose a taxpayer now qualifies for the payment and gets the check. But then that person’s earnings this year end up exceeding the income cap. The IRS will not claw back that money come next tax season, York said.

https://www.marketwatch.com/story/w...will-mean-to-you-2020-03-25?mod=mw_latestnews

EDIT: To answer another question, from the same article:

The money does not count as taxable income.

 

[Midpack]

Midpack, this looks like you may still get the payment:

Good to know, but I'll be doing large Roth conversions for a while. Maybe we'll get a small deduction in 2020, but I'm not complaining.

 

[cathy63]

What are the net tax implications of the payment? I plan to donate it, but will hold back any taxes.

The stimulus payment itself does not count as income and it is not taxable.

The only tax implications are related to your other 2020 income. If your 2019 (or '18) income was low enough, the government will give you the money now, but it has no way to know if you'll actually qualify for it until you file your 2020 return. [-]If your income this year is too high, you won't qualify and you'll have to pay it back. So hang onto the money until you're sure of your income and know it's in the qualifying range.[/-]

edit: fixed based on REWahoo's link that says there won't be a clawback. That's good news.

 

[Midpack]

The stimulus payment itself does not count as income and it is not taxable.

The only tax implications are related to your other 2020 income. If your 2019 (or '18) income was low enough, the government will give you the money now, but it has no way to know if you'll actually qualify for it until you file your 2020 return. If your income this year is too high, you won't qualify and you'll have to pay it back. So hang onto the money until you're sure of your income and know it's in the qualifying range.

I hadn't picked up on that, so my post #5 above is essentially wrong (no gaming the system). Thanks.

 

[Fermion]

So this is totally free money if you can qualify, no matter what you make in 2020?

That is crazy lol.

 

[mkedst]

Will this tax credit reduce MAGI for 2020 tax year, which could affect ACA subsidy?

 

[CardsFan]

Looks like we qualify for the full $2,400. I really feel guilty taking it. We don't need it. Maybe will find a worthy charity.

 

[Walt34]

We just squeaked in under the wire to qualify because of a Roth conversion. Normally I try to plan ahead but didn't figure on a pandemic and then calculating eligibility for a stimulus check. Who knew?

At this point we have no plans on what to do with it and won't until a deposit is actually made.

 

[SecondCor521]

Will this tax credit reduce MAGI for 2020 tax year, which could affect ACA subsidy?

No. It's a refundable credit, not an adjustment to income. It should show up on your 2020 tax return below the point where MAGI is calculated for ACA subsidy purposes.

 

[pb4uski]

According to the calculator we'll get $2,400 based on our 2019 AGI... but I thought it was going to be based on earned income and our earned income is nil? or did they change it?

I'll admit that I haven't been following the topic.

 

[RobbieB]

We're getting the whole wad! Imma gonna blow it all too! Woo-hoo, free dough!