How will the stimulus work? (1 Viewer)

[Joan's E]

So I've read some summaries of these payments and they say it's based on 2019 taxes if you've filed them. If not, it's based on 2018 taxes. My wife says she read that it's going to be based on 2019 taxes regardless, so if you file your taxes AFTER receiving the money and are above the threshold, you will need to pay it back when filing your 2020 taxes.

Based on 2018 taxes, we should get the full amount. Based on estimated 2019 taxes (which I haven't filed yes) I would get nothing. So am I going to have to pay this back in 2021 or is it actually based on 2018?

Does that question make sense? Anyone know how this will operate?

 

[The moose]

Not getting a check due to 2018 income. Some of the employees I had to lay off are making more than they did working with the additional $600 a week plus unemployment, filing for the PPP to reopen my business has been quite the experience with all the changes since it rolled out.

You read about how crazy the government does things. It becomes very real when you deal with it.

Yeah if you loose enough income this year you will be able to get the money next tax season because the money is only a advance of a tax credit on this year's tax.

Well you must have paid a nice wage to your employees for them to qualify for 600 more bucks a week. In employment you get what 40 percent of your gross and the up to 600 is to make up the difference. Everyone is not gonna make out like a fat rat.

Everyone is not getting 600 more a week it is up to 600 to get you close to what your gross would be. Every dishwasher a cracker barrel is not getting 600 bucks a week extra and unemployment.

Now we are gonna have people that get more and we are gonna have people that get forked.

Trust me on that one as a life long employed New Orleans resident that did not get one fema cent after Katrina people will get forked it is part of life.

My one bit of advice is if your uncle decided to fork you (and he screws plenty) just get over it quickly and figure out a way to make it work without being angered long because it is not productive to moving forward.

 

[TxSaintFan]

Actually the Feds are paying the extra $600 through the Cares Act.

Department of Labor Issues Guidance for $600 Unemployment Payments under the CARES Act

www.debevoise.com

 

[superchuck500]

 

[TxSaintFan]

That's just nonsense.

 

[V Chip]

With Trump killing off oversight of the slush find, those hedge fund managers are gonna hear a lot of stuff like this

 

[efil4]

Not getting a check due to 2018 income. Some of the employees I had to lay off are making more than they did working with the additional $600 a week plus unemployment, filing for the PPP to reopen my business has been quite the experience with all the changes since it rolled out.

You read about how crazy the government does things. It becomes very real when you deal with it.

my company filed monday- took a full week of gathering documents - 211 pages submitted

waiting on bank now to advise. on $350,000 lol

its amazing.

Now i see hedge funds applying for.

The system is gamed ...always has been, always will be.

 

[CajuninVA]

The stimulus money is showing in my bank account as of this morning. I filed 2019 only a couple of weeks ago, and they managed to use that number, because I would not have qualified off of my 2018 returns.

 

[TxSaintFan]

my company filed monday- took a full week of gathering documents - 211 pages submitted

waiting on bank now to advise. on $350,000 lol

its amazing.

Now i see hedge funds applying for.

The system is gamed ...always has been, always will be.

I got notification from our bank last night that we have been approved. Waiting on final paperwork and funding. Will start calling employees back to work next week.

 

[Joan's E]

So have we finally concluded whether I will need to pay this back if either my 2019 or 2020 income would price me out of the stimulus amount I received based on 2018 income?

 

[JRad]

So have we finally concluded whether I will need to pay this back if either my 2019 or 2020 income would price me out of the stimulus amount I received based on 2018 income?

Been poking around for this as well, since I planned a 2021 project around those funds. I'm also in the boat of my 2020 income being high enough to be in a different bracket. Found this so far:

For clarification, the money that you receive via your stimulus check is not taxable, meaning it doesn’t count towards your 2020 taxable income. In addition, the check is not an advance on your 2020 tax refund, as they are mutually exclusive from one another.

Coronavirus Stimulus Package: What You Need to Know

smartasset.com

I didn't see anything on the IRS site, but I admittedly didn't dive very deep.

Snopes seems to back that up

One benefit of this structure is that it means people can get an extra stimulus credit amount in their 2020 refunds if their income falls in 2020 compared to prior years. Say an individual makes $100,000 in both 2018 and 2019. That’s above the income phase out threshold for the stimulus rebate, so they won’t be sent a stimulus payment immediately. But if this person loses their job in 2020 and so makes $75,000 in 2020, their 2020 income will be below the threshold for the stimulus rebate. So when they file their 2020 tax return in 2021, they will be eligible for a $1,200 stimulus rebate credit against 2020 taxes.
In the opposite situation, when a person’s income in fact rises from 2018/2019 to 2020, they won’t have their refunds reduced in 2020 or face any other claw-back. Say an individual filed a 2018 tax return and made $75,000 and hasn’t filed a 2019 return yet. Then in each of 2019 and 2020 they make $100,000 (above the phase-out for the rebate for an individual). This individual should receive a stimulus payment of $1,200 immediately because the IRS will use their 2018 filing data in absence of a 2019 return. But when they file for 2019 and 2020, they will not be required to pay back the advance refund. Any tax refund they have for 2019 or 2020 won’t be reduced below what it would have been otherwise.

Will Your Coronavirus Stimulus Check Count Against Your 2020 Tax Refund?

While the stimulus payment is technically a tax credit, its categorization as such was made only so the government could disburse payments using the IRS’ existing infrastructure.

www.snopes.com

 

[Humperdoo]

I don’t know how it will work for Americans, US citizens living here legally, but at least it will help illegal immigrants for sure.

California's Newsom announces $125M fund to give coronavirus stimulus checks to immigrants in state illegally

California Gov. Gavin Newsom announced on Wednesday plans to give cash payments to adult immigrants living illegally in the state to help them weather the coronavirus crisis.

www.foxnews.com

 

[Heathen]

House Democrats propose $2,000 monthly payments to Americans

thehill.com

 

[MT15]

We got our stimulus money today. We haven’t filed our taxes for 2019 yet. I have read that even if you don’t qualify for the stimulus after you file for 2019, you won’t be expected to give the money back.

Heres a couple of points about it from Forbes:

Is my check taxable? No. This is not taxable income.

Are you sure it's not taxable? What about messing up my benefits? Or my FAFSA? Yep, sure it's not taxable. It won't boost your income and won't affect your benefits.

Are you sure that I don’t have to pay it back? I read that somewhere that it’s an advance and I do have to pay it back. Or that it will reduce my refund. You will not have to pay it back. It is an advance, but it’s an advance of a new, temporary credit for 2020. It will not affect your “normal” refund in 2020. The only folks who should see a difference are those who didn’t get the advance this year but were due one - they’ll get more since they’ll get the credit in 2021 (for the 2020 tax year). You can read more about how it works - with an example - here.

 

[Joe Okc]

As long as we don't run down to Walmart and buy a bunch of things made in China.. Giving our money back to China's economy... Talk about Irony there.

Well... I bought a New Weed wacker that I needed... and I need a new tire for my motorcycle...

I hate to say it.. But with all this stimulus and unemployment. I am making more money than when I was working.. and I am so enjoying the time off.

There are a few others thing I would like to get.. But I can't spent it really because I don;t know how long this is gonna last... and I may need the money for Bills and food... The Uncertainty of the Future...

I will tell you this... Right after Christmas we had a DJ get sick.. and that gave me a ton of extra shifts. I was doing 6 days a week straight for about 8 weeks... Man was I griping that I wasn't getting any time off.. Little did I know that while I was complaining that the Good Lord was taking care of me... Giving me extra work and extra income because he knew I was gonna need it... So sometimes even when you are least expecting it and you may be unhappy with the present situation. God is actually working for your best interest.. Thank You Lord for looking out for me... In Jesus Name...

 

[JimEverett]

As long as we don't run down to Walmart and buy a bunch of things made in China.. Giving our money back to China's economy... Talk about Irony there.

Well... I bought a New Weed wacker that I needed... and I need a new tire for my motorcycle...

I hate to say it.. But with all this stimulus and unemployment. I am making more money than when I was working.. and I am so enjoying the time off.

There are a few others thing I would like to get.. But I can't spent it really because I don;t know how long this is gonna last... and I may need the money for Bills and food... The Uncertainty of the Future...

I will tell you this... Right after Christmas we had a DJ get sick.. and that gave me a ton of extra shifts. I was doing 6 days a week straight for about 8 weeks... Man was I griping that I wasn't getting any time off.. Little did I know that while I was complaining that the Good Lord was taking care of me... Giving me extra work and extra income because he knew I was gonna need it... So sometimes even when you are least expecting it and you may be unhappy with the present situation. God is actually working for your best interest.. Thank You Lord for looking out for me... In Jesus Name...

Good you are doing well. I know a few people in the entertainment business who are getting killed. Its sad.
I am curious - do strippers get paid at least minimum wage and then tips or are they like waitresses? Or, are they not even considered "employees" at all, and therefore cannot get unemployment?

 

[Joe Okc]

Good you are doing well. I know a few people in the entertainment business who are getting killed. Its sad.
I am curious - do strippers get paid at least minimum wage and then tips or are they like waitresses? Or, are they not even considered "employees" at all, and therefore cannot get unemployment?

Honestly, I don;t know how the clubs are gonna come outta this.

As to the girls.. Unfortunately they are independant contractors... Not employees..OH My Gosh that would be a nightmare...

The smart ones have a savings, a home and are doing ok... the other half are living in a motel with their boyfriend who hasn't worked a day in 6 years and they ran out of money two weeks ago.

I have to be honest... I am surprised that I haven't had more phone calls or knocks on my door.

BTW- there is a post I need to make and I am unsure where to put it.. Here or SR.com EE???

 

[Eeyore]

https://www.forbes.com/sites/shahar...ting-17-million-stimulus-checks/#742f1a9e665b

“For those earning $1 million annually, a tax break buried in the recent coronavirus relief legislation is so generous that its total cost is more than total new funding for all hospitals in America and more than the total provided to all state and local governments,”

 

[cuddlemonkey]

As long as we don't run down to Walmart and buy a bunch of things made in China.. Giving our money back to China's economy... Talk about Irony there.

Well... I bought a New Weed wacker that I needed... and I need a new tire for my motorcycle...

I hate to say it.. But with all this stimulus and unemployment. I am making more money than when I was working.. and I am so enjoying the time off.

There are a few others thing I would like to get.. But I can't spent it really because I don;t know how long this is gonna last... and I may need the money for Bills and food... The Uncertainty of the Future...

I will tell you this... Right after Christmas we had a DJ get sick.. and that gave me a ton of extra shifts. I was doing 6 days a week straight for about 8 weeks... Man was I griping that I wasn't getting any time off.. Little did I know that while I was complaining that the Good Lord was taking care of me... Giving me extra work and extra income because he knew I was gonna need it... So sometimes even when you are least expecting it and you may be unhappy with the present situation. God is actually working for your best interest.. Thank You Lord for looking out for me... In Jesus Name...

Did you just thank Jesus for making another person so sick that he didn't work for 8 weeks?