Stimulus Payment Calculator

[MRG]

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.

+1
I'm confused?

 

[walkinwood]

There are 3 variables - 2018, 2019, 2020 AGI; so 8 combinations.
I'm having a hard time figuring out which combinations will result in a person (or couple) getting this stimulus payment.

Can someone explain - maybe use the numbers in the left column as a shortcut?

Qualify?	2018	2019	2020	Outcome
1	Y	Y	Y	Get money
2	Y	Y	N	??
3	Y	N	Y	??
4	Y	N	N	??
5	N	Y	Y	Get money?
6	N	Y	N	??
7	N	N	Y	??
8	N	N	N	No money

 

[SecondCor521]

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.

They changed it. They removed that requirement from the bill that passed the Senate.

 

[SecondCor521]

There are 3 variables - 2018, 2019, 2020 AGI; so 8 combinations.
I'm having a hard time figuring out which combinations will result in a person (or couple) getting this stimulus payment.

Can someone explain - maybe use the numbers in the left column as a shortcut?

Qualify?	2018	2019	2020	Outcome
1	Y	Y	Y	Get money
2	Y	Y	N	??
3	Y	N	Y	??
4	Y	N	N	??
5	N	Y	Y	Get money?
6	N	Y	N	??
7	N	N	Y	??
8	N	N	N	No money

All of the following assumes you otherwise qualify (you're not an estate or trust and not a dependent of another taxpayer, and you have a SSN, etc.).

First, the following is true about the advanced payments:

If you have filed a 2019 tax return and qualify based on your 2019 income, you will receive a stimulus payment based on your 2019 income.

If you have not filed or did not file or will not file a 2019 tax return, but did file a 2018 tax return and qualify based on your 2018 income, you will receive a stimulus payment based on your 2018 income.

If you did not file in 2019 or 2018, but did receive Social Security or railroad benefits during either of those two years, I believe that you will receive a stimulus payment based on those benefits.

Second, about the actual tax credit:

You'll get the actual tax credit as part of your 2020 income tax return which you'll file about a year from now based on your 2020 statistics (filing status, income, and dependents).

It's treated as a refundable credit, which means it's effectively like the government magically added that amount as federal income tax withholding.

Third, about the combination between the advance payment and the credit:

If your advance payment is lower than your credit, then you'll get the additional amount as part of your 2020 income tax return / refund / payment.

If your advance payment is higher than your credit, then you get to keep the extra.

HTH.

 

[fh2000]

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.

I am like you, and also filed my 2019, but what is the cut off date from IRS? If they have a big backlog your 2019 return might still not getting entered into their system by the time when they cut the check.

 

[walkinwood]

All of the following assumes you otherwise qualify (you're not an estate or trust and not a dependent of another taxpayer, and you have a SSN, etc.).

.....

Thank you so much for taking the time to explain that to me.

 

[pb4uski]

They changed it. They removed that requirement from the bill that passed the Senate.

OMG! They are even stupider than I thought! How can that be?

 

[Teacher Terry]

I thought you needed W2 income of 2500 to receive it. We will use it to help our kids who are effected. If that wasn’t the case we would donate it.

 

[Dtail]

What about a child who didn't file in 2018 and hasn't yet filed in 2019, but was claimed as a dependent in 2018 by someone who makes over the limit?

 

[JoeWras]

I am like you, and also filed my 2019, but what is the cut off date from IRS? If they have a big backlog your 2019 return might still not getting entered into their system by the time when they cut the check.

We simply don't know what their cut off is. I'm presuming the programmers are working on it now and will run a "batch job" sometime in the future. One would hope it will catch many of the returns going in now. Yes, I finished my return yesterday and filed it electronically with the hope of our qualifying 2019 AGI getting captured.

Hey, if I get a note back from Turbotax saying "Your Return Was Accepted," I'm hoping my AGI is in their system, ready to go. But who knows?

It would be nice to get the check this year and put it to work versus having it be a number on my 2020 return.

 

[Time2]

I read this thread and I still don't understand.


Is a check being sent or is it a credit on 2020 taxes?


How do they decide whether to use 2018 or 2019?


Can I force it it to be based on 2019? (I had much less AGI)
I haven't filed yet, waiting for tax man to call me.

 

[Cobra9777]

In 2019, we did our first large Roth conversion to the top of the 22% bracket. In 2018 and prior, we converted only to the top of the 12%/15% bracket. So we qualify for the whole $2400 based on 2018 AGI, but not 2019 due to the large conversion. We have not yet filed for 2019, so it seems that we will receive the advance payment.

In 2020, we will also convert to the top of the 22% bracket, which "should" disqualify us when we actually enter the credit on our 2020 return. So I was thinking we'd have to return the advance payment. But from what I'm reading here, there is no clawback provision and we'll be allowed to keep the advance payment even though we don't qualify.

I haven't filed yet because I still owe all the incremental tax on the larger conversion, which I made in late December 2019. All my quarterly estimated payments were based on 2018 actual tax divided by 4 (safe harbor). And now that payment is pushed out to July.

 

[sengsational]

Is a check being sent or is it a credit on 2020 taxes?

It would have to be a check or direct deposit or how else could the public "blow it" (stimulate the economy)

 

[RxMan]

After looking at our AGI for 2018 and 2019 and checking that calculator it appears we actually qualify for the full $2400 using either year for the calculation. This surprised me as I had assumed before that we wouldn’t qualify.

Now I will have to discuss what we will do with this money with my wife. I like the idea of giving some to the local food bank and spending with local small businesses.

The problem is our county issued a stay at home order which includes the closing of non-essential businesses that goes into effect today at 5PM so many of these businesses I’d hope to support will probably be closed when this money arrives. We may have to hold onto it for a little while and put it back into the economy after things start to reopen whenever that might be.

 

[PatrickA5]

It would have to be a check or direct deposit or how else could the public "blow it" (stimulate the economy)

I think it's a credit for 2020 taxes, but is being sent out now as an advance of that credit.

 

[Sue J]

For 2018 son and DIL filed MFJ and their income will qualify for the $2400. But DIL had an ITIN (Individual Taxpayer Identification Number) not a SSN. Right after they filed she got her green card and SSN. Despite him being my son (I'm on top of things like this and always file ASAP), I don't think they've filed yet for 2019.

I'm hoping her using an ITIN for 2018 taxes is not a problem.

 

[cathy63]

I read this thread and I still don't understand.


Is a check being sent or is it a credit on 2020 taxes? It will be a direct deposit if you provided bank account info when you filed your 2018 or 2019 taxes. Otherwise it should be a check in the mail.

It will also appear as a credit on your 2020 tax return. At that time you will subtract the amount received by direct deposit or check from the amount of credit to which you are entitled. For most people that will end up as $0, but if the credit was underpaid or not paid in advance, then you'll get it as part of your tax refund next year.


How do they decide whether to use 2018 or 2019? The bill says if you've filed a 2019 return by the time they allocate payments they'll use that; and if you haven't filed for 2019, they'll use 2018; and if you haven't filed either then they'll use your SSA-2019 or RRB-2019 to get your info. Nobody knows what date they'll be allocating payments because the bill has not yet passed the House and been signed into law.


Can I force it it to be based on 2019? (I had much less AGI)
I haven't filed yet, waiting for tax man to call me.No. Your best option is to get your 2019 taxes filed as quickly as possible. Are you sure you need help filing? Could you do it yourself using one of the online programs?

See answers in red.

 

[SumDay]

It will be interesting to see how 'Big Brother' Uncle Sam really is.

In 2018 we got a refund, so they have our banking info from that return.

For 2019, we owed a little, so sent them a check, which obviously had our Routing & Account #'s on there, but would they really capture that?

And, we're both receiving Social Security auto deposits, and his goes in one account and mine goes in another, so which will they use?

I'll report back if anyone else is as bored as I am and is truly intrigued.

 

[PatrickA5]

Cathy63, thanks for keeping us informed.

Question: DS is my dependent for 2019, but won't be for 2020. Can I assume that when he files his 2020 return next year that he'll get the credit (assuming he meets the qualifications).

 

[cathy63]

For 2018 son and DIL filed MFJ and their income will qualify for the $2400. But DIL had an ITIN (Individual Taxpayer Identification Number) not a SSN. Right after they filed she got her green card and SSN. Despite him being my son (I'm on top of things like this and always file ASAP), I don't think they've filed yet for 2019.

I'm hoping her using an ITIN for 2018 taxes is not a problem.

Nonresident aliens (which she was when they filed their 2018 return) do not qualify for the payment. They should file their 2019 return ASAP if she wants to get her payment in advance. Otherwise she'll get it on their 2020 tax return next year.

 

[cathy63]

Cathy63, thanks for keeping us informed.

Question: DS is my dependent for 2019, but won't be for 2020. Can I assume that when he files his 2020 return next year that he'll get the credit (assuming he meets the qualifications).

Yes.

 

[SecondCor521]

It will be interesting to see how 'Big Brother' Uncle Sam really is.

In 2018 we got a refund, so they have our banking info from that return.

For 2019, we owed a little, so sent them a check, which obviously had our Routing & Account #'s on there, but would they really capture that?

And, we're both receiving Social Security auto deposits, and his goes in one account and mine goes in another, so which will they use?

I'll report back if anyone else is as bored as I am and is truly intrigued.

They would not capture the TRN and account number from your check.

From my understanding of the bill, they will electronically deposit the advance credit into the bank account to which your 2018 federal income tax refund was deposited.

The accounts to which your Social Security is deposited are not relevant for this advance payment.

 

[easysurfer]

A couple of questions which aren't clear to me:

1. If you won't get a W-2 since you are happily FIRE'd, are you still considered a working American? Translated ... will you still get a payment?

2. In the end, doesn't the tax payers (no such thing as a free lunch) end up footing the bill one way or another for the payments?

 

[SecondCor521]

A couple of questions which aren't clear to me:

1. If you won't get a W-2 since you are happily FIRE'd, are you still considered a working American? Translated ... will you still get a payment?

2. In the end, doesn't the tax payers (no such thing as a free lunch) end up footing the bill one way or another for the payments?

1. If you filed in 2018 or 2019 and have an AGI below the threshold, yes, you should get a payment. If you didn't file either of those years but were receiving SS or RR benefits, you should get a payment. If neither of those apply, you could file a 2020 federal return and get the payment then.

2. I haven't looked at the funding for this bill, but my understanding is that it would add to the national debt. There's a bunch of language at the end of the bill that appears to say "This is an emergency, skip the balanced budget rules."

Whether the national debt gets paid back by tax payers, gets paid back by others, never gets paid back, or gets resolved some other way is a question that's above my pay grade.

 

[Which Roger]

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

I can't answer your question, but just want to thank you for donating, and for planting that idea in the minds of others (including myself).