Stimulus package for LPR-

[geowrian 22,337]

22 minutes ago, JD2017 said:

I’m wondering what will happen for those of us who were single in 2018, then married when our spouses arrived in 2019 and had a baby,  and haven’t filed our 2019 taxes yet.  Will they calculate our amount from the 2018 tax return?

In terms of the advance rebate, you'll get it based on your 2018 return if you don't have 2019 filed yet.

When you file 2020 taxes next year, if you are to receive more than what you got in advance, you will be able to claim it at that time.

[K + M 47]

11 hours ago, Lucky Cat said:

If you are an LPR for tax purposes in 2018 or 2019, you should qualify.

what if not LPR at time of filing taxes, but are LPR now?  Wife wasn't AOS approved yet so no GC at time of tax filing, she is now tho.  Tried finding a definitive answer on this as well but can't find it.

[AnJay 137]

9 minutes ago, Kerri and Myles said:

what if not LPR at time of filing taxes, but are LPR now?  Wife wasn't AOS approved yet so no GC at time of tax filing, she is now tho.  Tried finding a definitive answer on this as well but can't find it.

Payment will be based on 2018 tax returns Or on 2019 tax returns if they were already filled. Did you pay your taxes for 2019 jointly with your wife who already has GC and ssn? 

You know better who is included on your taxes and who doesn't. Its not a rocket science!

Edited March 27, 2020 by AnJay

[K + M 47]

4 minutes ago, AnJay said:

Payment will be based on 2018 tax returns Or on 2019 tax returns if they were already filled. Did you pay your taxes for 2019 jointly with your wife who already has GC and ssn? 

You know better who is included on your taxes and who doesn't. Its not a rocket science!

2019 taxes were Married Filing Jointly, but at the time of us filing our taxes my wife was not yet AOS approved so no green card, she is now.  That is what we are still curious about.  Yes she has SSN, and did at the time of filing, but she did not have her GC at time of filing, but she does have her Conditional Green Card now.  We are particularly curious about the fact that she was not LPR at time of filing, we did MFJ taxes, and are curious about if we will get the benefit for us both.  

[geowrian 22,337]

14 minutes ago, Kerri and Myles said:

2019 taxes were Married Filing Jointly, but at the time of us filing our taxes my wife was not yet AOS approved so no green card, she is now.  That is what we are still curious about.  Yes she has SSN, and did at the time of filing, but she did not have her GC at time of filing, but she does have her Conditional Green Card now.  We are particularly curious about the fact that she was not LPR at time of filing, we did MFJ taxes, and are curious about if we will get the benefit for us both.  

Being an LPR or not doesn't matter, as was stated already. What matters is that it was filed jointly (meaning she was a resident alien for the tax year - NRAs cannot file jointly) and used an SSN.

Edited March 27, 2020 by geowrian

[Steeleballz 7,550]

Just now, Kerri and Myles said:

2019 taxes were Married Filing Jointly, but at the time of us filing our taxes my wife was not yet AOS approved so no green card, she is now.  That is what we are still curious about.  Yes she has SSN, and did at the time of filing, but she did not have her GC at time of filing, but she does have her Conditional Green Card now.  We are particularly curious about the fact that she was not LPR at time of filing, we did MFJ taxes, and are curious about if we will get the benefit for us both.  

 

  If you both filed with SSN's, you both meet the eligibility requirements. 

 

  Remember this is a 2020 tax credit being paid in advance. You are both eligible right now. They are just using income from your previous tax return to determine what to send you now.

[K + M 47]

8 minutes ago, Steeleballz said:

 

  If you both filed with SSN's, you both meet the eligibility requirements. 

 

  Remember this is a 2020 tax credit being paid in advance. You are both eligible right now. They are just using income from your previous tax return to determine what to send you now.

with it being a 2020 tax credit paid in advance, does that mean we have to pay the benefit back?

[Lil bear 4,217]

17 minutes ago, Kerri and Myles said:

with it being a 2020 tax credit paid in advance, does that mean we have to pay the benefit back?

If , when you file your 2020 tax return, it is found that you were paid more than your actual income would have allowed , then you will be required to repay the extra amount you received. If you are deemed to have been due more than you received,  you will be credited the extra. This is also how it works with Premium Tax Credits (PTC) given for ACA marketplace health policies  

Edited March 27, 2020 by Lil bear

[geowrian 22,337]

21 minutes ago, Kerri and Myles said:

with it being a 2020 tax credit paid in advance, does that mean we have to pay the benefit back?

The credit received in advance will be owed but offset by the value of the credit you are eligible for, with any overpayment forgiven (unlike the 2008 rebate program - see below).

 

So let's break it down...

Ignore the fact that the rebate will sent in advance. For now, let's assume it only comes into play when you file your 2020 taxes.

When you file your 2020 taxes, you would claim the credit and get $2400 (assuming your AGi is under $150k - it's reduce above this) since you are MFJ w/ 0 children (I'm assuming). If you were getting $1000 before the credit, you would be getting $3400 back in a refund as a result.

 

Now let's throw in the advance...

You get $2400 in advance. When you file your 2020 taxes, you would claim the credit to get the $2400, but you would also owe the $2400 received back. The net result is you get a $1000 refund that you would have received had there never been any credit or advance rebate.

So yes, technically you have to pay it back. But you're paying back only something above what you would have been due anyway. In the end, you are getting $2400 more than without the program...you're just getting it sooner.

 

How this differs from the 2008 program is that it gave the advance based on prior returns, but it was possible that you  may have only been eligible for less of a credit or none at all when you actually went to file. As such, any amount received in advance was due back.

That scenario is technically possible here too - imagine earning more in 2020 than 2018/2019, resulting in being eligible or less of a refund. Or getting divorced. However, the way this credit is written, the overpayment is forgiven. So you would not owe anything back due to the change in circumstances.

 

 

4 minutes ago, Lil bear said:

If , when you file your 2020 tax return, it is found that you were paid more than your actual income would have allowed , then you will be required to repay the extra amount you received. If you are deemed to have been due more than you received,  you will be credited the extra. This is also how it works with Premium Tax Credits (PTC) given for ACA marketplace health policies  

Actually, my understanding is that they wrote into the bill that this scenario results in the overpayment being forgiven. Give me a minute to find the section of the bill actually passed by the senate (I have the reference for this from the pre-negotiated bill only right now)

Edited March 27, 2020 by geowrian

[Steeleballz 7,550]

21 minutes ago, Kerri and Myles said:

with it being a 2020 tax credit paid in advance, does that mean we have to pay the benefit back?

 

4 minutes ago, Lil bear said:

If , when you file your 2020 tax return, it is found that you were paid more than your actual income would have allowed , then you will be required to repay the extra amount you received. If you are deemed to have been due more than you received,  you will be credited the extra. This is also how it works with Premium Tax Credits (PTC) given for ACA marketplace health policies  

 

   The current draft says you do not have to pay back an over payment, but you are able to claim the difference if extra credit if it is due.

 

    https://www.everycrsreport.com/reports/IN11268.html  

Edited March 27, 2020 by Steeleballz

[Lil bear 4,217]

19 minutes ago, Steeleballz said:

 

 

   The current draft says you do not have to pay back an over payment, but you are able to claim the difference if extra credit if it is due.

 

    https://www.everycrsreport.com/reports/IN11268.html  

Thx. I hadn’t read the fine print. Appreciate that you two do !! 

[K + M 47]

15 minutes ago, geowrian said:

The credit received in advance will be owed but offset by the value of the credit you are eligible for, with any overpayment forgiven (unlike the 2008 rebate program - see below).

 

So let's break it down...

Ignore the fact that the rebate will sent in advance. For now, let's assume it only comes into play when you file your 2020 taxes.

When you file your 2020 taxes, you would claim the credit and get $2400 (assuming your AGi is under $150k - it's reduce above this) since you are MFJ w/ 0 children (I'm assuming). If you were getting $1000 before the credit, you would be getting $3400 back in a refund as a result.

 

Now let's throw in the advance...

You get $2400 in advance. When you file your 2020 taxes, you would claim the credit to get the $2400, but you would also owe the $2400 received back. The net result is you get a $1000 refund that you would have received had there never been any credit or advance rebate.

So yes, technically you have to pay it back. But you're paying back only something above what you would have been due anyway. In the end, you are getting $2400 more than without the program...you're just getting it sooner.

 

How this differs from the 2008 program is that it gave the advance based on prior returns, but it was possible that you  may have only been eligible for less of a credit or none at all when you actually went to file. As such, any amount received in advance was due back.

That scenario is technically possible here too - imagine earning more in 2020 than 2018/2019, resulting in being eligible or less of a refund. Or getting divorced. However, the way this credit is written, the overpayment is forgiven. So you would not owe anything back due to the change in circumstances.

 

 

Actually, my understanding is that they wrote into the bill that this scenario results in the overpayment being forgiven. Give me a minute to find the section of the bill actually passed by the senate (I have the reference for this from the pre-negotiated bill only right now)

I'm still a little bit confused by this, I will state how I am understanding this and just correct me if I am wrong.  On our 2020 taxes would would claim a tax credit which would pay us an extra $2400 because of this stimulus bill at the time of our refund, so if we got normally $1000, we would now get $1000+$2400=$3400.  

 

But...we technically took the $2400 in advance, what I don't understand here is that you said we would also owe the $2400 back.  What exactly did you mean by this?  What I understood from this is if we received anything more than we were owed, lets say we were due $2400 and were given $3000, so $4000 total, we would owe $600.  

 

I will bold what is not making sense exactly.

 

Thanks so much for the help in advance, this is helping a lot!

[geowrian 22,337]

31 minutes ago, geowrian said:

Actually, my understanding is that they wrote into the bill that this scenario results in the overpayment being forgiven. Give me a minute to find the section of the bill actually passed by the senate (I have the reference for this from the pre-negotiated bill only right now)

It starts at page 146 of the bill: https://files.taxfoundation.org/20200325223111/FINAL-FINAL-CARES-ACT.pdf

That said, it's not exactly a forgiving read. I will refer to the other reputable links providing an analysis of this bill for something that is easier to read, such as https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/.

In the event of divorce, they will split the advance rebate as having been half of the actual rebate the couple received. Which makes sense to me as as they would only be eligible for half the credit when they file. Although I wonder if it is possible to owe something back in the event that the couple had eligible children on the 2018/2019 return, but then no longer are able to claim that child for the credit on the 2020 return (i.e. int he event of a divorce and being unable to claim the child as a dependent). I'm not sure if this overpayment is forgiven or not.

 

7 minutes ago, Kerri and Myles said:

I'm still a little bit confused by this, I will state how I am understanding this and just correct me if I am wrong.  On our 2020 taxes would would claim a tax credit which would pay us an extra $2400 because of this stimulus bill at the time of our refund, so if we got normally $1000, we would now get $1000+$2400=$3400.

Yes.

Quote

But...we technically took the $2400 in advance, what I don't understand here is that you said we would also owe the $2400 back.  What exactly did you mean by this?  What I understood from this is if we received anything more than we were owed, lets say we were due $2400 and were given $3000, so $4000 total, we would owe $600.  

Your calculation would be:

$1000 refund (tax return w/o the credit existing)

 + $2400 CARES act credit

- $2400 advance rebate received

======

$1000 refund on your 2020 return.

 

So you would not "owe" anything back. You just would not be getting the $2400 you would have gotten if you did not receive the advance.

Does that calculation make more sense?

 

I'm kinda avoiding addressing the example you gave with the $3000 given, as you are now throwing in numbers that I don't know where they came from or what they mean/represent.

Edited March 27, 2020 by geowrian

[K + M 47]

5 minutes ago, geowrian said:

It starts at page 146 of the bill: https://files.taxfoundation.org/20200325223111/FINAL-FINAL-CARES-ACT.pdf

That said, it's not exactly a forgiving read. I will refer to the other reputable links providing an analysis of this bill for something that is easier to read, such as https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/.

In the event of divorce, they will split the advance rebate as having been half of the actual rebate the couple received. Which makes sense to me as as they would only be eligible for half the credit when they file. Although I wonder if it is possible to owe something back in the event that the couple had eligible children on the 2018/2019 return, but then no longer are able to claim that child for the credit on the 2020 return (i.e. int he event of a divorce and being unable to claim the child as a dependent). I'm not sure if this overpayment is forgiven or not.

 

Yes.

Your calculation would be:

$1000 refund (tax return w/o the credit existing)

 + $2400 CARES act credit

- $2400 advance rebate received

======

$1000 refund on your 2020 return.

 

So you would not "owe" anything back. You just would not be getting the $2400 you would have gotten if you did not receive the advance.

Does that calculation make more sense?

 

I'm kinda avoiding addressing the example you gave with the $3000 given, as you are now throwing in numbers that I don't know where they came from or what they mean/represent.

that calculation made it make complete sense, seeing it directly laid out like that, so the advance rebate we are receiving is acting as a deduction which in turn would be the amount we owe, the CARES act credit at time of filing is acting as an addition as we would be due that at time of filing, those offset each other, which leaves the normal tax refund.

 

Ty so much, that really made it make sense.

 

And yeah don't worry about the $3000 was just random numbers, but you made it make sense.

Edited March 27, 2020 by Kerri and Myles

[Diane and Chris 651]

9 hours ago, payxibka said:

Is it a federally funded means tested benefit that you APPLIED for?

 

For those nervous about using the STIMULUS money, please contact me and I will be happy to provide my direct deposit information 

I don’t think he was being snarky. I think it was meant to be a joke and to bring a bit of humor into these trying times.