Latest Stimulus Bill Passed

[khaepmu]

I appears that the stimulus bill has finally passed. I am curious as to weather or not I have to complete and send in my tax forms to the IRS for 2020  before I can be considered eligible. Last year I received the first stimulus check in my American bank account before the IRS received my tax forms for 2019. It is the same back account that my social security is sent to every month. 

[tonray]

23 minutes ago, khaepmu said:

I appears that the stimulus bill has finally passed. I am curious as to weather or not I have to complete and send in my tax forms to the IRS for 2020  before I can be considered eligible. Last year I received the first stimulus check in my American bank account before the IRS received my tax forms for 2019. It is the same back account that my social security is sent to every month. 

You only need to file your taxes if you believe your income will be significantly less than last year ...if last year's income were very high, you would be potentially excluded from current payment so if this year's income were to be lower and qualify, that is the only incentive to file immediately.

[mahjongguy]

Your 2019 1040 will be used to determine if you qualify. An AGI of less than 75k pays $1,400. As your AGI approaches $80k, the payment scales down to zero.

 

If someone has already filed their 2020 1040, then that AGI number will be used.

 

 

[Solinvictus]

1 hour ago, khaepmu said:

I appears that the stimulus bill has finally passed. I am curious as to weather or not I have to complete and send in my tax forms to the IRS for 2020  before I can be considered eligible. Last year I received the first stimulus check in my American bank account before the IRS received my tax forms for 2019. It is the same back account that my social security is sent to every month. 

You actually didn't need to file if you signed up early enough for the first initial covid relief last year. And you mentioned you did receive the first check. I didn't file because, I don't make enough and got both checks.

 

But at this point it seems you do need to file to qualify for the Recovery Rebate Credit if one did not receive payments yet.

If you didn’t get the full Economic Impact Payment, you may be eligible to claim the Recovery Rebate Credit

The IRS and Treasury have issued all first and second Economic Impact Payments.

If you didn’t get any Economic Impact Payments or got less than the full amounts, you may qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim the credit even if you don’t normally file. See Recovery Rebate Credit for more information.

Edited March 7, 2021 by Solinvictus

[mtls2005]

Seen some recommendations to file 2020 as early as possible, but for most it probably won't make much difference. 

 

in an email received today from my tax SW provider...

 

Filing now could be a smart move.
While lawmakers are currently negotiating another round of COVID-19 relief aid, you might wonder what a potential 3rd stimulus payment could mean for your tax return.
If it passes, a 3rd stimulus check could be arriving as soon as the next few weeks. It would likely be based on the income you reported on your most recent tax return, and whether or not it passes, the sooner you file, the sooner you'll get your tax refund this year.
Some life changes in 2020 may qualify you for a larger stimulus check.
•

If you made less money in 2020 than you did in 2019, you might be eligible for a larger payment. Filing now ensures that the IRS will use your lower 2020 income to calculate your qualifying stimulus amount

•

If you have a new qualifying dependent (e.g. you had a baby or adopted a child in 2020), you will likely qualify for additional money from the IRS. The current proposed bill includes $1,400 per qualifying individual and each of their dependents.

Filing your 2020 return ensures that the IRS accounts for all your eligible dependents when calculating the potential upcoming stimulus payment. Plus, when you file with TaxAct®, we'll also help you check to make sure you didn't miss out on additional money owed to you from the previous two stimulus payments.

This potentially amounts to an additional $500 on your first stimulus payment, and an extra $600 on your second stimulus payment due to your new dependent.

 

 

 

 

 

 

If you got stim #1, stim#2 then you'll get stim #3, by "get" I mean receive (dirdep, check, PPcard) if eligible.

 

 

Payment is said to be disbursed by the end of the month, so not sure how quickly one can file? I guess if you're ready now, maybe go ahead and eFile.

 

 

 

 

[jeffandgop]

59 minutes ago, mtls2005 said:

Seen some recommendations to file 2020 as early as possible, but for most it probably won't make much difference. 

 

in an email received today from my tax SW provider...

 

Filing now could be a smart move.
While lawmakers are currently negotiating another round of COVID-19 relief aid, you might wonder what a potential 3rd stimulus payment could mean for your tax return.
If it passes, a 3rd stimulus check could be arriving as soon as the next few weeks. It would likely be based on the income you reported on your most recent tax return, and whether or not it passes, the sooner you file, the sooner you'll get your tax refund this year.
Some life changes in 2020 may qualify you for a larger stimulus check.
•

If you made less money in 2020 than you did in 2019, you might be eligible for a larger payment. Filing now ensures that the IRS will use your lower 2020 income to calculate your qualifying stimulus amount

•

If you have a new qualifying dependent (e.g. you had a baby or adopted a child in 2020), you will likely qualify for additional money from the IRS. The current proposed bill includes $1,400 per qualifying individual and each of their dependents.

Filing your 2020 return ensures that the IRS accounts for all your eligible dependents when calculating the potential upcoming stimulus payment. Plus, when you file with TaxAct®, we'll also help you check to make sure you didn't miss out on additional money owed to you from the previous two stimulus payments.

This potentially amounts to an additional $500 on your first stimulus payment, and an extra $600 on your second stimulus payment due to your new dependent.

 

 

 

 

 

 

If you got stim #1, stim#2 then you'll get stim #3, by "get" I mean receive (dirdep, check, PPcard) if eligible.

 

 

Payment is said to be disbursed by the end of the month, so not sure how quickly one can file? I guess if you're ready now, maybe go ahead and eFile.

 

 

 

 

File as soon ad you can. Note the Senate’s bill changed some elements of the House bill that the Senate voted upon so the Senate’s version goes back to the House for their approval. If the House votes in favor then it goes to President Biden for signature.

 

Still should expect the third stimulus for eligible people to see direct deposits by the end of March

[mahjongguy]

However, if you qualified per your 2019 return but earned too much per your 2020 return, then you should delay filing for 2020 until the last minute.

[J Town]

36 minutes ago, mahjongguy said:

However, if you qualified per your 2019 return but earned too much per your 2020 return, then you should delay filing for 2020 until the last minute.

Wouldn't that be cheating? You're recommending someone knowingly defraud the government? I can only imagine that would eventually catch up to someone who did this and create more headaches for $1400 than it would be worth.

[khaepmu]

I just completed my tax returns and filed them (efile). I used TurboTax. Last year I used turboTax but was unable to file my 2019 tax forms  electronically despite having the correct AGI so requested an extension and sent the tax forms to the IRS by registered post at the local Thai post office. This was sometime in mid-September of 2020.  I got the 2 stimulus checks sent to my US bank account, direct deposit. 

 

After having just finished my 2020 tax returns  with TurboTax (efile) they informed me that I would be getting a $1,800 tax refund from the IRS and asked me for my bank account information for the direct deposit. I am not quite sure  why I am entitled to this generous rebate or gift except that my income was very low. ( don't make much money outside of my meager monthly Social Security  check and some dividends from a few US held mutual funds and ETF's.) By the way, I am retired. TurboTax also said I should be getting a stimulus check as early as the end of this month. 

[mahjongguy]

If I made that level of income I might see it as a moral dilemma but surely it's not fraud. It's just one of the quirky angles that were discussed as this stimulus package was in its final stages of preparation. It was recognized as a flaw but the IRS stated that they didn't have the authority to penalize taxpayers for exercising their right to wait until the last minute to file. 

 

 

 

 

 

 

[Pib]

To receive stimulus payment #3 a person will need to have a 2019 or 2020 tax return onfile with the IRS, with the latest completed return taking priority in determining if  a person qualifies and for how much.

 

If a person got stim #1 and #2 payments based on their 2018 return because then didn't file a 2019 return (first two stimulus payments were based on 2018 or 2019 return) then unless they have a 2020 return onfile they will not receive the stimulus #3 which should begin flowing in a few weeks. 

 

I have no doubt some lower income folks will fall in the category of having filed for 2018 but didn't file for 2019 or 2020 which means they will need to file a 2020 return or wait to see if the can get a rebate recovery on a 2021 return.

 

Of course all of this assumes the House approves the Senate bill which was really the original House bill with some Senate tweaks.  I don't see anyone expecting the House not to approve the tweaks made...and then on to the Prez for signing into law.

 

https://www.kiplinger.com/taxes/602379/third-stimulus-check-update-senate-passes-bill-with-more-targeted-stimulus-payments

Quote

Payments Based on 2019 or 2020 Tax Return

Under the current bill, the amount of your third stimulus check will be based on either your 2019 or 2020 return. If your 2020 tax return isn't filed and processed by the time the IRS is ready to send your third stimulus payment, the tax agency will use information from your 2019 tax return. If your 2020 tax return is already filed and processed when the IRS starts to process your payment, then your stimulus check will be based on information found on that return. If your 2020 return is filed and/or processed after the IRS sends you a stimulus check, but before July 15, 2021 (or September 1 if the April 15 filing deadline is pushed back), a second payment will be sent to you for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.

 

If you haven't already filed your 2020 tax return, this will create some opportunities to "game" the system and increase the amount of your third stimulus check. For instance, if you'll get a larger check based on your 2020 tax return, than you might be able to quickly file your 2020 return electronically and have your third stimulus check based on that return. If you'll get a bigger check if it's based on your 2019 return, then just wait until after your payment is sent to file your 2020 return. For more on this, see How Filing Your Tax Return Early (or Late) Could Boost Your Third Stimulus Check.

 

 

[khaepmu]

'If I made that level of income I might see it as a moral dilemma but surely it's not fraud. It's just one of the quirky angles that were discussed as this stimulus package was in its final stages of preparation. It was recognized as a flaw but the IRS stated that they didn't have the authority to penalize taxpayers for exercising their right to wait until the last minute to file. '

 

I am sorry but what level of income are you referring to? I have worked most my adult life overseas so my Social security check is very small. I have accumulated a small amount of savings that I have put into some conservative mutual funds and ETF's in the USA and am able, in a good year, to use dividends from them to supplement my income. 

[Pib]

1 hour ago, khaepmu said:

I just completed my tax returns and filed them (efile). I used TurboTax. Last year I used turboTax but was unable to file my 2019 tax forms  electronically despite having the correct AGI so requested an extension and sent the tax forms to the IRS by registered post at the local Thai post office. This was sometime in mid-September of 2020.  I got the 2 stimulus checks sent to my US bank account, direct deposit. 

 

After having just finished my 2020 tax returns  with TurboTax (efile) they informed me that I would be getting a $1,800 tax refund from the IRS and asked me for my bank account information for the direct deposit. I am not quite sure  why I am entitled to this generous rebate or gift except that my income was very low. ( don't make much money outside of my meager monthly Social Security  check and some dividends from a few US held mutual funds and ETF's.) By the way, I am retired. TurboTax also said I should be getting a stimulus check as early as the end of this month. 

 

On your 2020 return there is an area where they ask if you received stimulus payment #1 (i.e., the $1,200/adult) and/or stimulus payment #2 (i.e the $600/adult).  Based on how you described your income it sound like you are simply getting a healthy refund because of too much tax you had withheld during the year on your Social Security pension OR in that area where you answer whether you got stim payment #1/#2 you answered No to both which would give you an $1800 tax credit which just happens to equal the surprise tax return you are getting.

 

But don't worry, if you did say on your return you didn't receive the stim #1 and/or #2 when in fact you did the IRS knows you "did" get the payments (or at least they were sent) and then disallow your refund/correct your tax return.  

[khaepmu]

I did get both stimulus checks in 2020 and I Indicated as much when I  completed my tax form with TurboTax. I had no tax withheld for the 2020 tax year (I haven't had taxes withheld for many years now- I was exempt from having to pay taxes  because I lived and worked overseas). So I was surprised when they claimed I am eligible for the $1800. Probably because my AGI was very low last year- the way TurboTax computed it.  Not really expecting to get it. 

Thanks for you input.

[Pib]

I think below smartasset website provides an excellent overview of the 3rd stimulus bill/payment....amounts...who qualifies....applicable tax returns...really good overview IMO.

https://smartasset.com/insights/coronavirus-third-stimulus-checks

 

 

[Pib]

17 minutes ago, khaepmu said:

I did get both stimulus checks in 2020 and I Indicated as much when I  completed my tax form with TurboTax. I had no tax withheld for the 2020 tax year (I haven't had taxes withheld for many years now- I was exempt from having to pay taxes  because I lived and worked overseas). So I was surprised when they claimed I am eligible for the $1800. Probably because my AGI was very low last year- the way TurboTax computed it.  Not really expecting to get it. 

Thanks for you input.

Can't say...everyone has a different income stream, deductions,  and possibly earn different tax credits.   Maybe you got an Earned Income Credit.

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/5-facts-about-the-earned-income-tax-credit/L6YfN8sCL

[mahjongguy]

38 minutes ago, khaepmu said:

'If I made that level of income...

 

I am sorry but what level of income are you referring to?

 

38 minutes ago, khaepmu said:

 

Referring to the $75,000 Adjusted Gross Income which is the maximum AGI to get the full $1,400.

 

Unfortunately I did not reach that level of income in 2019 nor 2020, and as usual I had overpaid my EST so I filed right away to get my refund. 

 

[Etaoin Shrdlu]

6 hours ago, J Town said:

Wouldn't that be cheating? You're recommending someone knowingly defraud the government? I can only imagine that would eventually catch up to someone who did this and create more headaches for $1400 than it would be worth.

No, it isn't cheating and it isn't fraud. If congress wanted to claw these payments back for those who subsequently filed returns with higher AGI they would have made provisions for that, or made the payment taxable for 2021. So far, they haven't.

 

It also works the other way. Those who had income above the threshold if their 2018 returns were used for the first stimulus payment, but whose AGI fell below for 2019 but whose returns were not processed due to Covid delays before the cutoff in August last year, missed the first payment. If these people's AGI is too high in 2020, they can't claim the credit on their 2020 1040.

 

 

[ThailandRyan]

6 hours ago, mahjongguy said:

If I made that level of income I might see it as a moral dilemma but surely it's not fraud. It's just one of the quirky angles that were discussed as this stimulus package was in its final stages of preparation. It was recognized as a flaw but the IRS stated that they didn't have the authority to penalize taxpayers for exercising their right to wait until the last minute to file. 

 

 

 

 

 

 

You'll just get hit with possibly owing taxes when you file for 2021 when you list the amount given as a tax rebate for 2020.  There is a question on the TT program where you fill in what you received at least there is for your 2020 taxes, 2 boxes to be filled in.

[mtls2005]

20 hours ago, khaepmu said:

I did get both stimulus checks in 2020 and I Indicated as much when I  completed my tax form with TurboTax. I had no tax withheld for the 2020 tax year (I haven't had taxes withheld for many years now- I was exempt from having to pay taxes  because I lived and worked overseas). So I was surprised when they claimed I am eligible for the $1800. Probably because my AGI was very low last year- the way TurboTax computed it.  Not really expecting to get it. 

Thanks for you input.

 

You should examine your 1040 (from within TT, or by printing).

 

Closely examine Line 30. Does it show $1,800? I'm guessing that it does. What do you do next? Maybe wait, hope that it gets caught before they give you $1,800. Otherwise maybe form a plan to deal with it.

 

I noticed a glitch in my Tax SW, which removed my $1,200 Recovery Rebate Credit (unreceived stim #1), when the SW updated to a newer rev. I had to go back in and add it.

[Pib]

 

3rd stimulus payment (i.e.,. $1,400/adult) is now law...some folks will receive payment over the next few days with payment continuing over the coming weeks.   

https://thehill.com/policy/finance/542800-psaki-1400-payments-could-start-to-arrive-in-bank-accounts-this-weekend

Quote

 

White House press secretary Jen Psaki said Thursday that people could start receiving $1,400 direct payments in their bank accounts as soon as this weekend, after President Biden signed the legislation authorizing the payments earlier in the afternoon.

"People can expect to start seeing direct deposits hit their bank accounts as early as this weekend," Psaki said during a press briefing.

She added that those payments are "just the first wave" and that more will be issued over the next several weeks.

Biden on Thursday signed a $1.9 trillion coronavirus relief package that provides for payments to most Americans of up to $1,400 per person. Psaki said that 158.5 million households can expect to receive payments.

 

 

[Pib]

Now people can start clamoring for a 4th stimulus payment---which IMO ain't going to happen as the election is over and country recovering quickly. 

Yes, some folks have have not recovered from lost jobs &  other COVID impacts and could definitely use some kind of additional federal and/or state assistance but when it comes to more stimulus where most all Americans get a payment--need it or not--I can't see that happening with the election and worst of COVID behind us.

[ThailandRyan]

Filed my taxes for 2020 with a now reduced income since I closed my business and had no true income for the year.  Should get the new stimulus, I am hoping.

[Pib]

 

An approx breakdown of the $1.9T 3rd stimulus law.

[George Bowman]

I just checked and the last time I filed taxes was in 2016. Since then I've been collecting SS retirement and don't even come close to making enough money to file. Additionally, I received both stimulus checks that were sent to my Bangkok Bank account without any hiccups.  I'm assuming that I still don't need to file taxes in order to qualify for the third check. Is my assumption correct?

 

[mtls2005]

Some rumblings from the administration pre- and post-speech Thu. night mentioning that some folks could see a direct deposit "as early as this weekend".

 

7 minutes ago, George Bowman said:

Is my assumption correct?

Yes. That seems like a reasonable assumption given your track record with direct deposit of SocSec and Stim #1 and Stim #2.

 

[ubonjoe]

31 minutes ago, George Bowman said:

I'm assuming that I still don't need to file taxes in order to qualify for the third check. Is my assumption correct?

Yes

[Gumballl]

On 3/6/2021 at 10:36 PM, khaepmu said:

I just completed my tax returns and filed them (efile). I used TurboTax. Last year I used turboTax but was unable to file my 2019 tax forms  electronically despite having the correct AGI so requested an extension and sent the tax forms to the IRS by registered post at the local Thai post office. This was sometime in mid-September of 2020.  I got the 2 stimulus checks sent to my US bank account, direct deposit. 

 

After having just finished my 2020 tax returns  with TurboTax (efile) they informed me that I would be getting a $1,800 tax refund from the IRS and asked me for my bank account information for the direct deposit. I am not quite sure  why I am entitled to this generous rebate or gift except that my income was very low. ( don't make much money outside of my meager monthly Social Security  check and some dividends from a few US held mutual funds and ETF's.) By the way, I am retired. TurboTax also said I should be getting a stimulus check as early as the end of this month. 

As you went through the motions of completing your 2020 tax return, were you prompted as to whether you received last year's stimulus payments ($1200 + $600)?

This coincidentally adds up to $1800. Unless you have someone in your household that was also eligible to receive the payments, it seems doubtful that you have scored a windfall of overpaid taxes. Watch out for next year.

[ThailandRyan]

Took less than a week for both my Federal and State tsx returns to be accepted and my refunds both went into my account by direct deposit today.  Just got the bank notification that my fed refund hit the account 30 minutes ago.  The state one hit earlier this afternoon.

Now to wait and see if and when the Stimulus check will go in.

[mtls2005]

IRS started processing stimulus checks Friday, money begins arriving in accounts 

 

The IRS on Friday began processing stimulus checks, which could arrive in Americans’ bank accounts as soon as this weekend.

Unlike the prior rounds of checks, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17.

Americans can check the status of their third payment by using the Get My Payment tool starting on Monday.

 

 

https://www.cnbc.com/2021/03/12/stimulus-check-update-irs-started-processing-payments.html