Stimulus Payment Calculator

[Which Roger]

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

That is crazy lol.

Yes, but somebody earlier in this thread said he/she would donate the money, which is a great idea for those who don't think they'll need it.

 

[Time2]

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?

I made an attempt to do them myself, but we closed our business in late 2018 and then disposed of business assets in 2019. I got conflicting advice on how to handle the asset disposal. Some said I needed to do another schedule C others said fill out some 8xxx form. After filling out several forms, I decided one more year with the tax man and after this year it all should be very simple.

 

[Fermion]

Yes, but somebody earlier in this thread said he/she would donate the money, which is a great idea for those who don't think they'll need it.

I plan to put the money to work in the local economy, building a house. Hopefully that will help keep jobs.

 

[statsman]

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

Sarcasm tag missing? Because there is nothing free about this package.

 

[Fermion]

Sarcasm tag missing? Because there is nothing free about this package.

Well, yeah I meant technically it does cost 12.5 cents to print a new $100 bill, but I think most of the money will be electronic, don't you?

 

[NanoSour]

If this stimulus check counts against 2020 credits, would that negate child tax credits and education credits? That seems strange...am I missing something.

We had 2 children under 17 for the 2018 tax year and 1 in college so we're on tap to get $3400 based on the 2018 tax return. For better or worse, it's going to the college

The child in college did have income in both 2018 and 2019, but not enough to owe taxes so didn't file a tax return. According to this discussion, she'll get $1200 bases on SSA 2019 data. Again, going to the college

 

[USGrant1962]

I linked this analysis by the Tax Foundation in another thread - it answers a lot of the questions coming up here. It covers the whole act, not just this payment, which BTW is called a Recovery Rebate.

https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/

 

[SecondCor521]

If this stimulus check counts against 2020 credits, would that negate child tax credits and education credits? That seems strange...am I missing something.

We had 2 children under 17 for the 2018 tax year and 1 in college so we're on tap to get $3400 based on the 2018 tax return. For better or worse, it's going to the college

The child in college did have income in both 2018 and 2019, but not enough to owe taxes so didn't file a tax return. According to this discussion, she'll get $1200 bases on SSA 2019 data. Again, going to the college

It's a different refundable credit and it is treated as though you have an additional $3400 in federal income tax withholding. So you'll still get the child tax credits and education tax credits and they won't be affected by the stimulus check. Although the child tax credits and education tax credits are a mix of refundable and non-refundable, so how much you actually end up getting for those will depend on your 2020 tax liability.

Note that stimulus checks will not go to those who can be claimed as a dependent on another person's return. So if the child in college was your dependent in 2019 and 2018, she will not receive the $1200 advance payment. She may qualify for the credit on her 2020 taxes, again depending on if she could be claimed as a dependent on your return (and her AGI, of course, but that'll probably be below the $75K threshold).

 

[statsman]

Well, yeah I meant technically it does cost 12.5 cents to print a new $100 bill, but I think most of the money will be electronic, don't you?

My response to the previous poster had nothing to do with the cost of sending the checks.

 

[Fermion]

My response to the previous poster had nothing to do with the cost of sending the checks.

Yes, I know that. I think you were lamenting the fact that the government bailout package is just adding to a already massive debt.

It doesn't matter. The debt has gone from being a concern to being not a concern at all, because it can't be contained.

It is sort of like that saying, "if you owe the bank $50,000, that is your problem, if you owe the bank $50,000,000, it is their problem"

 

[easysurfer]

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.

Thanks for responding. Looks like I will get the $1200 amount. Also, found out (as a question was asked during a morning news program) that the stimulus won't get treated as taxable income .

 

[Dalmore]

We won't be getting any of the stimulus package, and I am ok with that. It should go to those that actually need it.

 

[cathy63]

If this stimulus check counts against 2020 credits, would that negate child tax credits and education credits? That seems strange...am I missing something.

We had 2 children under 17 for the 2018 tax year and 1 in college so we're on tap to get $3400 based on the 2018 tax return. For better or worse, it's going to the college

The child in college did have income in both 2018 and 2019, but not enough to owe taxes so didn't file a tax return. According to this discussion, she'll get $1200 bases on SSA 2019 data. Again, going to the college

Are both of your younger children going to be under 17 at the end of 2020? I think they have to be your qualifying children for the actual tax year for which the credit applies in order to receive funds for them. I.e. the IRS should add 2 yrs to the ages of any children reported on your 2018 tax return when determining the amount to advance to you. I am not 100% sure of this, just trying to think logically about how an advance on a 2020 credit should work. It seems to me that the info on your 2018/19 returns is only being used to help them figure out what your 2020 return might look like.

Does your college student receive social security benefits? If not, she won't get the advance credit. Just having a social security number is not enough, she has to be receiving benefits and getting an SSA-1099 in the mail every year. Also, as SecondCor521 points out, she doesn't qualify if she is your dependent in 2020.

 

[CRLLS]

It just occurred to me, I wonder how they will handle those who filed as Married and subsequently got divorced? Never having been thru a divorce, can one of them have kept the bank account number? If automatically sent to that account, then maybe somebody is getting a double stimulus?

Just curious. This does not affect us or anyone that I know of.

 

[statsman]

We won't be getting any of the stimulus package, and I am ok with that. It should go to those that actually need it.

That would have been the case for us had we not filed for the 2019 tax year, but we completed that last month. As such, we will be getting a payout from the stimulus package.

Will use the extra money to try and spread it around. I have a scheduled haircut right after our county's lockdown expires on 4/13 (unless they extend it). If my stylist is still in business, which is in serious doubt right now, I plan to tip heavily for that haircut and the next one five weeks later. Same goes for any takeout food we order and pick up or have delivered.

 

[statsman]

It just occurred to me, I wonder how they will handle those who filed as Married and subsequently got divorced? Never having been thru a divorce, can one of them have kept the bank account number? If automatically sent to that account, then maybe somebody is getting a double stimulus?

Just curious. This does not affect us or anyone that I know of.

There are lots of issues to be concerned with. What if there isn't a bank account of record for a tax ID? It might have been payment by a check. In either case, what if that bank account is no longer active? It seems like the checks need to be requested and not pushed.

 

[SecondCor521]

Are both of your younger children going to be under 17 at the end of 2020? I think they have to be your qualifying children for the actual tax year for which the credit applies in order to receive funds for them. I.e. the IRS should add 2 yrs to the ages of any children reported on your 2018 tax return when determining the amount to advance to you. I am not 100% sure of this, just trying to think logically about how an advance on a 2020 credit should work. It seems to me that the info on your 2018/19 returns is only being used to help them figure out what your 2020 return might look like.

Does your college student receive social security benefits? If not, she won't get the advance credit. Just having a social security number is not enough, she has to be receiving benefits and getting an SSA-1099 in the mail every year. Also, as SecondCor521 points out, she doesn't qualify if she is your dependent in 2020.

@cathy63, the way I read the text of the bill, it can be either a qualifying child (ie under 17) or a qualifying dependent (for example, a child under 24 but in college full time).

People don't put their kids' birth dates on their tax returns; just the kids' SSN and whether they're under 17 or not (which doesn't actually matter, as my previous paragraph implies). So the IRS can't do the math the way you think. What I suspect will happen is that a parent who has filed a 2019 return with dependents will get the advance payment based on that; if a 2019 dependent is no longer a dependent in 2020 then the parent gets the $500 for that dependent and doesn't have to pay it back.

Agree with your second paragraph about the college student receiving SS benefits. It's rare but possible I think - disability perhaps?

 

[PatrickA5]

@cathy63, the way I read the text of the bill, it can be either a qualifying child (ie under 17) or a qualifying dependent (for example, a child under 24 but in college full time).

People don't put their kids' birth dates on their tax returns; just the kids' SSN and whether they're under 17 or not (which doesn't actually matter, as my previous paragraph implies). So the IRS can't do the math the way you think. What I suspect will happen is that a parent who has filed a 2019 return with dependents will get the advance payment based on that; if a 2019 dependent is no longer a dependent in 2020 then the parent gets the $500 for that dependent and doesn't have to pay it back.

Agree with your second paragraph about the college student receiving SS benefits. It's rare but possible I think - disability perhaps?

That will be interesting to see how it works out. My 21 year old college son is my dependent on my tax return. He won't be in 2020. I'll be curios to see if we get the $500 credit this year and he gets the $1,200 credit next year.

 

[SecondCor521]

It just occurred to me, I wonder how they will handle those who filed as Married and subsequently got divorced? Never having been thru a divorce, can one of them have kept the bank account number? If automatically sent to that account, then maybe somebody is getting a double stimulus?

Just curious. This does not affect us or anyone that I know of.

A couple filing MFJ in 2019 would get the $2400 stimulus, and it would be deposited into the bank account listed on their 2019 tax return.

When I got divorced, I quickly went through and shut down any joint accounts, especially credit cards and bank accounts as soon as the divorce was final. I did so exactly for reasons such as this. However, I know many people are not as compulsive about it, and/or may have reasons for keeping a joint account open, and/or may have listed an account in one person's name as the account to receive a federal tax refund.

But note the timing on this. To file MFJ in 2019 meant that they were married as of 12/31/19. There will be very few who file MFJ and let their federal tax return be deposited into a single account where the refund wouldn't be considered a marital asset (and thus subject to division by the divorce court).

And anyway, the way the law is written, each person in an MFJ situation gets $1200, so the spouse who didn't get the refund in advance could file and get it about a year from now.

There are lots of issues to be concerned with. What if there isn't a bank account of record for a tax ID? It might have been payment by a check. In either case, what if that bank account is no longer active? It seems like the checks need to be requested and not pushed.

Yes, there are lots of issues.

If a bank account is no longer active, it's not 100% clear to me what will happen. However, my understanding is that if a direct deposit of a regular IRS tax refund doesn't work for whatever reason (incorrect TRN/account number, or account closed), then the IRS eventually sends a check. I would imagine they'll follow the same procedure here with the advance stimulus refund checks.

If there is no bank account, I believe a stimulus check will be mailed to the last known address of record.

In any case, the bill requires that the IRS send a notice via mail to the last known address of record indicating the amount and method of payment along with a phone number, so the taxpayer will at least know about it and can follow up.

 

[SecondCor521]

That will be interesting to see how it works out. My 21 year old college son is my dependent on my tax return. He won't be in 2020. I'll be curios to see if we get the $500 credit this year and he gets the $1,200 credit next year.

That's the way I would expect it to work.

 

[cathy63]

@cathy63, the way I read the text of the bill, it can be either a qualifying child (ie under 17) or a qualifying dependent (for example, a child under 24 but in college full time).

People don't put their kids' birth dates on their tax returns; just the kids' SSN and whether they're under 17 or not (which doesn't actually matter, as my previous paragraph implies). So the IRS can't do the math the way you think. What I suspect will happen is that a parent who has filed a 2019 return with dependents will get the advance payment based on that; if a 2019 dependent is no longer a dependent in 2020 then the parent gets the $500 for that dependent and doesn't have to pay it back.

Agree with your second paragraph about the college student receiving SS benefits. It's rare but possible I think - disability perhaps?

Hmm ... the copy of the bill text I have says: "an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer."

Section 24(c) of the tax code says "The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17."

So, unless the bill changed again since I downloaded the "final" text, which is not impossible, it seems to me that they intended to include only children who are under 17 at the end of 2020.

Looking at the 1040, I see your point that there's no way to tell from that how old the children will be in subsequent years. I don't know why I thought the birth dates were there, I guess because tax software always asks for them so it can figure out which credits apply. If they really wanted to calculate the dependents ages, they'd have to do some kind of lookup in the SSA database, which does seem unlikely.

 

[JoeWras]

Sounds like Intuit and H&R block have new reasons for people to use their services or software.

 

[SecondCor521]

Hmm ... the copy of the bill text I have says: "an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer."

Section 24(c) of the tax code says "The term “qualifying child” means a qualifying child of the taxpayer (as defined in section 152(c)) who has not attained age 17."

So, unless the bill changed again since I downloaded the "final" text, which is not impossible, it seems to me that they intended to include only children who are under 17 at the end of 2020.

Looking at the 1040, I see your point that there's no way to tell from that how old the children will be in subsequent years. I don't know why I thought the birth dates were there, I guess because tax software always asks for them so it can figure out which credits apply. If they really wanted to calculate the dependents ages, they'd have to do some kind of lookup in the SSA database, which does seem unlikely.

You're correct on the first point. I was relying on my research which happened to be based on the text from an earlier version of the bill, which referred to a different section of the tax code (section 151, which would have included more dependents) instead of 24(c). I checked the latest version of the bill I've seen, and it does indeed refer to 24(c), which would be kids under 17, as you note.

Thanks for the correction.

 

[Which Roger]

I plan to put the money to work in the local economy, building a house. Hopefully that will help keep jobs.

Yes, spend or donate. Ironically, on a LBYM forum, we are urging people to not save!

 

[scrabbler1]

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 now
2	Y	Y	N	Get money now
3	Y	N	Y	Get money in 2021 if 2019 filed (me), otherwise get money now
4	Y	N	N	Get money now if 2019 not filed, otherwise no money
5	N	Y	Y	Get money now if 2019 filed, otherwise get money in 2021
6	N	Y	N	Get money now if 2019 filed, otherwise no money
7	N	N	Y	Get money in 2021
8	N	N	N	No money

I tried to provide correct outcomes to the 8 combinations. Did I get them right?