We are allowed to cash the stimulus check, correct?

[JeanneAdil 6,606]

9 minutes ago, NikLR said:

I didnt say you werent getting money.  I said you arent getting a "check" lmao

 

those not filing a tax return do get a check in the mail as they do not register a bank direct deposit with a tax return (as they did not do one)

 

The IRS could start issuing payments within three weeks, said Treasury Secretary Steven Mnuchin. The agency hasn’t announced a schedule. It will be able to move fastest for people who have filed 2019 tax returns with direct-deposit information and significantly slower for those who will need paper checks. 

 

https://www.wsj.com/articles/everything-you-need-to-know-about-the-payments-from-the-government-11585229988

[NikLR 13,231]

17 minutes ago, payxibka said:

And what does mailing your return have to do with getting a check?   Answer is NOTHING!! 

 

 

It is all about having provided direct deposit information.   

Lol i know.  I'm being pedantic.

 

Sorry.

 

A physical check you will get if you physically mailed the tax return and recieved a refund in that manner or they dont have your bank info. A direct deposit you will receive if they have that info. 

Okay i get it, dont make jokes about getting money from the government.  Point taken.  Lol

[NikLR 13,231]

24 minutes ago, payxibka said:

Exactly!!!  Also the same point I was making 

I know the point you were making.  Really I do.  

[Hilde 381]

Are US citizens who live abroad eligible for this stimulus payment, if taxes were payed accordingly?
 

[WandY 430]

I never get a refund, so the IRS does not have my bank info. My CPA said they will mail checks to eligible citizens AFTER they do direct deposits. If the IRS does not have your bank info - and you have not filed for 2019 - do so now and they will direct deposit. Also, according to my CPA, there will be some offsetting of taxes owed against the stimulus. You can decide to file later (up to the July date) and take the stimulus money now, or file now and they will (allegedly) deduct what you owe from the stimulus. I'll let them pay me for once, because if they keep spending trillions of dollars, nothing will be worth much after the inflation which follows. In many areas we should be going back to work.

[geowrian 22,338]

15 minutes ago, WandY said:

Also, according to my CPA, there will be some offsetting of taxes owed against the stimulus.

Not exactly...at least not as it is implied / commonly understood.

 

What the CARES Act did (well, one part of it) is create a refundable tax credit for 2020 taxes. So a single adult earning under $75k/year would get $1200. MFJ would get $2400. Each qualifying child would add another $500 to that tax credit. Income over $75k/150k would be reduced by $5 for every $5 over, until the credit is exhausted.

So if you file 2020 taxes next year and owed $1000 normally but can claim $1200 in the tax credit, you would get a $200 refund.

Calculation:

-$1000 tax owed

+$1200 CARES tax credit

======

$200 refund

 

However, the CARES Act also allows that the tax credit be sent in advance.  So you get it sooner, but the total amount you get is the same.

Calculation:

-$1000 tax owed

+$1200 CARES tax credit

-$1200 advance rebate

======

$1000 owed on your 2020 taxes. But also note that you would still have the $1200 advance rebate...you just got it sooner and therefore your tax return is fundamentally unaffected.

 

Now there are 2 cases where this is not quite as simple.

 

Case 1: You get a lower advance than the tax credit.

Example: You get married in 2020, or your last tax return was filed Single or MFS. Or you have a qualifying child. Or if your income was over the threshold but is now lower.

Result: You get the advance rebate, then whatever gap still exists you get added to your 2020 return. So if you can claim $2400 for 2020 but you only got $1200, you can claim the remaining $1200 credit for your taxes (technically claiming the full $2400 and subtracting the $1200 already received).

 

Case 2: You get a higher advance than the tax credit.

Example: Your income goes above the threshold.

Result: Any overpayment is forgiven. This is not like the 2008 rebates where these people ended up having to pay back some or all of the rebate due to the change in circumstances.

[Loren Y 2,756]

Ha ha ha, everyone on here arguing about something that hasn't happened. Everyone believes the check is in the mail... Sure it is. Has anyone received anything yet? Until then it doesn't matter. 

 

[geowrian 22,338]

1 hour ago, Loren Y said:

Ha ha ha, everyone on here arguing about something that hasn't happened. Everyone believes the check is in the mail... Sure it is. Has anyone received anything yet? Until then it doesn't matter.

The law was passed, so unless they pass a law altering or removing it, the tax credit is happening.

As for the advance rebate, that has yet to materialize. They have goals in place but the timeframe is still up in the air.

[NikLR 13,231]

52 minutes ago, geowrian said:

The law was passed, so unless they pass a law altering or removing it, the tax credit is happening.

As for the advance rebate, that has yet to materialize. They have goals in place but the timeframe is still up in the air.

It feels a little like Snatch. 5 mins Turkish. It was 5 mins 5 mins ago!

[SalishSea 18,062]

On 4/4/2020 at 9:23 AM, JeanneAdil said:

It will be able to move fastest for people who have filed 2019 tax returns with direct-deposit information and significantly slower for those who will need paper checks. 

Like not until September.....

[Ryan H 3,819]

~~~Hijack posts removed~~~