Taxes ?
Have a tax question, that maybe this is a CPA on the Forum.
I didn't receive either the $1,200 or the $600 stimulus checks from the COVID-19 economic relief package, because my income in 2019 was over $150k for my self and wife. The stimulus checks were based on your 2019 IRS tax return. In 2020, my income was cut in half. #1 Is there a process I can apply for the second check which was sent out ? #2 I was told that there is a IRS tax form that can be completed and sent in with my 2020 IRS tax return, that I can get a 'credit' on my return for those stimulus funds I should have received ? Thanks ! |
Not alone
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2) Yes it is a refundable tax credit. So if the credit exceeds your tax liability you will be refunded any excess credit. Let say you owe 500 and they owe you a stimulus credit of 1000 you will receive a 500 refund or if you were getting a 500 refund before the credit of 1000 you would then receive a refund of 1500 Sent from my iPhone using Winnipesaukee Forum mobile app |
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What I read about holding off to file is because if the new stimulus reconciliation goes through it would be (presumedly) based on one's latest tax return. So, if we made more in 2020 than in 2019, which we did marginally, any future stimulus check might be reduced by that new income. Does that make sense? I mean, I'm guessing by the time it's actually processed—two weeks—and goes through, it might not matter, but Daddy needs a new pair of shoes, ya dig? Sent from my SM-G950U using Winnipesaukee Forum mobile app |
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I happen to use HR Block tax software, and currently in the process of entering tax info. I will check if HRB software asks these same type questions regarding 'stimulus' money, but so far nothing mentioned ? Will report back to all.... Bigdog |
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What I find interesting and strange, the IRS appears to date, to be using only 2019 tax return as the baseline and those amounts for determining if you qualify for any stimulus money. If that's the case I wouldn't qualify because I am over the threshold amount. That said, if they start sending new stimulus checks based on the 2019 return, as they did before, I would miss out on any new stimulus checks, based on the above reason. However, based on my 2020 income I would qualify. I wonder what tax year filing, the IRS will base any new stimulus checks ? Use the 2019 tax return as they did in the past, or actually use you 2020 Return if filed ? Guess we'll have to wait and see ? TBD ? |
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Completed my taxes and getting a refund, plus Stimulus money I missed out on last go-round because 2019 AGI pushed me over the threshold to qualify.
I'm using HR Block tax software, and at the end of form, it does ask questions regarding COVID-Stimulus money received or not. This time I qualify for 2020 tax year period. Joey2665.... I believe there was mention in this Post about whether to file 2020 tax return early, or wait until it is determined when next COVID-Stimulus money (yet to be passed by Congress) is passed before filing tax return ? Does it really matter that much ? I'll assume the disbursement of stimulus money will be based on your 2020 tax return figures ? Thoughts ? |
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In other words if you receive the stimulus check in January and it ends up that you do not qualify you will have to pay it back when you file your 2021 tax return conversely if you didn’t get the credit and you subsequently qualify you’ll receive a credit when you file your 2021 tax return. So at the end of the day it doesn’t matter when you file your 2020 return it’ll all come out in the wash when you file 2021. Wow I really need to get paid for all this free advice [emoji23][emoji23][emoji23][emoji23][emoji23][emoji23][emoji33] Sent from my iPhone using Winnipesaukee Forum mobile app |
Free advice
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All this doesn't apply to me but it is interesting to have the knowledge so I can join the conversation when we're allowed to go to cocktail parties again. Much better than the usual talk about septic systems. In the meantime, what good is"stimulus" if I won't get the money until I file my 2021 return, which could be October of 2022... Ahhh! Now I get it. Just before I vote in November of 2022, I'll get a check. |
Joey, can you confirm the following?
My '20 income went up from '19 but I've not yet filed taxes. If the new stimulus check goes through, and my amount is based on my lower '19 income, rendering a higher stimulus check amount, will I owe that money when I file my '21 taxes? Sent from my SM-G950U using Winnipesaukee Forum mobile app |
Isn’t stimulus check eligibility based upon $80k for individual and $160k for a couple’s adjusted gross income (after deductions taken)?
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Just reading that the tax due date for 2020 is being pushed out till July 15th. IRS request
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No, there is talk this morning to move the 2020 return date to July. Will see if I can find
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The discussion was started due to the delay the IRS had in January til early February with processing returns. Not see how or why they need to delay until July. Returns are being processed
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Standard deduction...
$12,400
The standard deduction for 2020 is $12,400 for singles and $24,800 for married joint filers. There is also an “additional standard deduction,” for older taxpayers and those who are blind. A married filer who is blind or aged 65 and over can claim $1,300 for themselves. So... what is the total for: married filing jointly, both over 65, neither one blind. Every review I have read shoots out the "$1,300" thing but never makes clear that the 1,300 is per person (of the joint filing) or a single addition for the joint filing. Thanks in advance. |
Turbo Tax Deluxe, $30.00
Answers all your questions. |
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Each person over 65 gets an additional $1300 added to the $24,800 for married filing jointly. |
Std. vs itemized
The increased standard deduction is fine, but I still have to keep track of all eligible expenses, medical deducible, co-pays, etc. which may approach the limit and need to be tracked for the years when we do go over. If you stop tracking these records and then have, say, an un-reimbursed casualty loss, you need all the records. The system needs further simplification, but, at least in 2017, we started heading in the right direction. I hope it continues.
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The only change could be in your favor. If the government did NOT pay a stimulus to you because available data said you did not qualify HOWEVER when you do your taxes you DO qualify, you would receive a tax credit that "pays" the stimulus to you when you file. Of course this is the federal government and the IRS. What they said then and what they actually do now are subject to change. |
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This is what we are hearing from IRS and AICPA but until the bill is passed we have no idea. I recommend to my clients if they received the first 2 stimulus checks and their income went over the threshold than try to hold out filing until the 3 round is out. Additionally an interesting side effect is if you had a dependent that you did not receive stimulus for and they had earned income they should probably file on their own and claim themselves. If they do this they retroactively get $1800. 1200 from the first stimulus and 600 from the second stimulus. But again they have to have enough earn income to file on their own and clam themselves Sent from my iPhone using Winnipesaukee Forum mobile app |
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My recommendation would definitely be to hold off as long as you can. You can obviously prepare your tax return and know what your results are but I will tell my preparer not to hit the button to electronically file until after the third stimulus is issued Sent from my iPhone using Winnipesaukee Forum mobile app |
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My post included information, from readings, which still left the final answer unclear/ambiguous. Because this forum is so helpful, I knew I could get a respectful/decisive response, such as from Susie Cougar. Thank you. M-Head- naturally using Turbo Deluxe! Good man/woman! |
Taxes
All this discussion of taxes reminds me of the old joke (at least is was when I first heard it), "How much did you make? Send it in."
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Well, the IRS did move the file date. Now May 15
https://trishintel.com/irs-pushes-back-tax-deadline/ Sent from my iPhone using Winnipesaukee Forum mobile app |
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Joey2665, I sent you a PM
Hi Joey2665, I sent you a PM, please read.
Thanks ! |
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Simple answer
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It's been a long time since I used the app, but I seem to remember a link to the full site to where you can see PMs, and other features of the full site. Dave |
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Funny
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They must have either upgraded the app over the years or I was too dumb to know how to access the PMs. In any case, thanks for letting me (and others) know. Dave |
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