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Serenity now! |
I've heard conflicting messages about the stimulus checks going out to US taxpayers. Is the money we're getting essentially an advance on next year's tax refund? So if I owe the IRS 1k in taxes next year, and my wife and I get $2400 in stimulus checks, will we owe $3400 next year instead of $1000? Ladies and gentlemen, take my advice - pull down your pants and slide on the ice. ʘ ͜ʖ ʘ | ||
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| Banned |
I haven't heard that. It may be taxable itself, but it is not a loan, AFAIK. | |||
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| Non-Miscreant |
Its non-taxable. You won't incur any tax liability on your $2400, Unhappy ammo seeker | |||
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| Lead slingin' Parrot Head  |
Yeah, there is a lot of confusion surrounding the government checks right now...and I've heard similar to you in that some pundits are explaining that it is a "loan" against expected 2020 refund checks...but I've heard other pundits explain that it is not a loan. One pundit said that, for those who don't file taxes but otherwise qualify for the check, that there is a simple form to fill out and then the check is mailed. The question came up during today's COVID-19 Trump Task Force press conference and the President and his team appeared stumped and came back with a "we'll get back to you on that" answer. | |||
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Member |
This does not surprise me or anyone at all. Remember years ago with another bill we were told "that we have to pass it to find out what is in it". I have not read the bill however people are posting on line all the garbage in the bill that has nothing to do with the relief itself. I guess we will find out. The Second Amendment to the United States Constitution. A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed. As ratified by the States and authenticated by Thomas Jefferson, Secretary of State NRA Life Member | |||
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| Lead slingin' Parrot Head |
Reading through a different article than the one posted below I see the relief check described as a payment and found this statement in a USA article. "Another bonus? The checks aren’t taxable." ...so, my reading is that this is a one time payment from the Government and not a loan. Note: embedded video and multiple hyperlinks at the linked website article. Treasury backs off requirement that Social Security recipients, others take extra step to get $1,200 checks Michael Collins, USA TODAY April 1, 2020, 7:15 PM MDT WASHINGTON – Facing stiff criticism, the Treasury Department abruptly changed course late Wednesday and announced that Social Security beneficiaries and other Americans who haven’t filed income taxes for the past two years won’t have to take any extra steps to receive one-time checks of up to $1,200 under a new economic recovery program. “Social Security recipients who are not typically required to file a tax return need to take no action and will receive their payment directly to their bank account,” Treasury Secretary Steven Mnuchin said in a statement. Most Americans won’t have to do anything to receive a payment under the $2.2 trillion program designed to help the economy recover from the fallout of the coronavirus pandemic. The checks will be sent automatically within the next three weeks to eligible Americans who filed tax returns in 2018 and 2019. But the Internal Revenue Service posted a notice on its website earlier this week saying people who typically don’t file taxes would need to file a simple tax return to receive one of the payments. That would have included low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return. Wednesday's announcement reverses that decision. Mnuchin said the IRS will now use Social Security data to generate payments to Social Security recipients who did not file tax returns in 2018 or 2019. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits, he said. The Treasury Department has the authority under the economic recovery program, which President Donald Trump signed into law last week, to ask the Social Security Administration and other agencies to supply the data it needs to process the checks. One of the reasons Treasury officials may have wanted to require a simple tax form from those who haven't paid taxes in the past two years is to make sure they are sending checks to the most up-to-date address,” said Kyle Pomerleau, an economist at the American Enterprise Institute, a public policy think tank. “Lots of people move, so this is a reasonable way to deal with it," he said. The downside, Pomerleau said, “is that you are shifting part of the burden on people by requiring them to do something to get their rebate.” The filing requirement raised objections from some lawmakers. Forty-one senators sent a letter Wednesday to Mnuchin arguing that the requirement would place “a significant burden” on retired seniors and people with disabilities. “We strongly urge you to ensure that economic stimulus payments are automatically sent to vulnerable seniors and individuals who experience disabilities, without these individuals needing to file a tax return,” the letter said. The IRS said it is setting up a web-based portal at IRS.gov/coronavirus to provide more information on how to file a 2019 tax return and receive a payment. How your stimulus check is calculated If you've already filed your 2019 taxes, the IRS will use those returns to determine your payment. If not, your 2018 returns will be used to calculate your check. Individuals with an adjusted gross income of $75,000 or less will be eligible for a one-time payment of up to $1,200 ($2,400 for joint tax returns) and $500 for each qualifying child. Those with little or no tax liability also will get $1,200 ($2,400 for joint returns). The payments will start to phase out for Americans who earn more than $75,000, or $150,000 for a joint return. The amount you receive will be decreased by 5% of the amount your income exceeds $75,000. For example, a single person with an $85,000 salary would get $700 after subtracting 5% of $10,000, or $500. The payments will phase out completely for single filers with incomes exceeding $99,000, $136,500 for head of household filers with one child, and $198,000 for joint filers with no children. How will the money be provided? Americans who already have provided the IRS with their bank account information will receive the money as a direct deposit. Those who haven’t will receive a check in the mail, although experts warn the wait for physical checks could take longer than three weeks. Those who want a direct deposit but haven’t provided their bank account information can do so through the IRS’s new online portal. While the web portal will make it easier to provide that information and get answers to other questions, “lack of web access – or a lack of knowledge even if one has the internet – is going to be a bigger challenge for low-income individuals,” said Garrett Watson, an economist at the Tax Foundation, a Washington-based think tank. “The IRS should explore ways to get to those individuals outside of a digital platform.” Tax preparation services – both commercial and non-profit – should be able to help individuals update their information if they don’t have web access, he said. Meanwhile, online payment services such as Venmo have been in discussions with Treasury officials about helping to distribute the checks to consumers. Justin Higgs, spokesman for Venmo owner PayPal, confirmed that talks are underway but declined to provide more information. Jodie Kelley, chief executive officer of the Electronic Transactions Association, said the industry has offered its assistance to Treasury “to quickly and securely deliver stimulus money to American consumers.” “Electronic payments can deliver these funds far more quickly than the time it takes to print, mail and cash a check,” she said. “It's also an important delivery method for the over 14 million Americans who do not have bank accounts, and thus do not have a ready way to cash a check.” Watson said the IRS and Treasury will need to take steps to ensure taxpayer privacy is preserved in any partnership with online payment services. Michael Collins covers the White House. Reach him on Twitter @mcollinsNEWS. | |||
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| Member |
This was an 800 page bill. There are lots of things in there. Plus there will be Regulations and technical advice, which have not been issued yet. One program is the $1,200 check. It is not taxable. If TUS knows your bank info, it will show up in the next 3 weeks. The information that it will impact you next tax refund is incorrect. If you owe $1,000, you owe $1,000, not $3,400. For small businesses, there is a loan program. You can apply for a loan from your bank or the SBA, and if you use the loan proceeds to pay wages and other expenses, the loan will be forgiven. The loan forgiveness may also be not taxable, TBA. Then there are the other 799 pages.... ---------------------------------------------------- Dances with Crabgrass | |||
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posting without pants |
Yes, and no. It is an advance on a portion of your refund next year, BUT that is because they are creating a new tax credit. So your refund would be larger next year than this year by the amount of the coming check. Make sense? Strive to live your life so when you wake up in the morning and your feet hit the floor, the devil says "Oh crap, he's up." | |||
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| Lead slingin' Parrot Head |
Nope. I'm still lost. My understanding, perhaps flawed, is that all who meet the income test will receive the check...including those who don't normally file taxes and are not expected to receive a refund next year. (reference the article I posted earlier) "Those with little or no tax liability also will get $1,200 ($2,400 for joint returns)". | |||
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Member |
This would make sense. I read the following in another article. The stimulus payment is actually a refundable credit against your 2020 tax liability, according to Kyle Pomerleau of the American Enterprise, and is paid out as an advanced refund. That means you don’t have to wait to file your 2020 taxes to get the money. Most tax credits are non-refundable, meaning if your income tax were for example, $2000, and you qualify for $2500 of non-refundable credits, then those credits would reduce your liability to $0. You would not get $500 back due to the those credits exceeding your taxes owed, b/c those credits are non-refundable. There are refundable credits such as Earned Income Tax Credit (aka, federal welfare payment) and Child Tax Credit. In the same case above, if you had $2500 of refundable credits applied towards $2000 tax owed, you would get $500 back. Often low-income tax-payers have zero tax liability but are eligible for a lot of refundable credits; therefore, tax return season is a annual windfall for them. What I'm understanding so far, is that as an individual, you can collect your 2020 Coronavirus tax credit now, in advance, or you can collect it on your taxes next year, but not in both years. | |||
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| Bookers Bourbon and a good cigar  |
It is a slow day in the small Arkansas town of Toad Suck, and streets are deserted. Times are tough, everybody is in debt, and everybody is living on credit. A tourist visiting the area drives through town, stops at the motel, and lays a $100 bill on the desk saying he wants to inspect the rooms upstairs to pick one for the night. As soon as he walks upstairs, the motel owner grabs the bill and runs next door to pay his debt to the butcher. The butcher takes the $100 and runs down the street to retire his debt to the pig farmer. The pig farmer takes the $100 and heads off to pay his bill to his supplier, the Co-op. The guy at the Co-op takes the $100 and runs to pay his debt to the local prostitute, who has also been facing hard times and has had to offer her "services" on credit. The hooker rushes to the hotel and pays off her room bill with the hotel owner. The hotel proprietor then places the $100 back on the counter so the traveler will not suspect anything. At that moment the traveler comes down the stairs, states that the rooms are not satisfactory, picks up the $100 bill and leaves. No one produced anything. No one earned anything... However, the whole town is now out of debt and now looks to the future with a lot more optimism. And that, SigForum readers, is how a Stimulus package works. If you're goin' through hell, keep on going. Don't slow down. If you're scared don't show it. You might get out before the devil even knows you're there. NRA ENDOWMENT LIFE MEMBER | |||
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Member |
“Technically, the stimulus checks are tax credits advanced from your 2020 tax return. They are similar to other refundable tax credits, like the child tax credit, which aren't considered income and which aren't taxable.” Link Although not an authoritative source, consider if the government ever GIVES you anything? My recommendation is to plan for it to be an advance on a presumptive 2020 tax refund come April 15, 2021. ========================================== Just my 2¢ ____________________________ Clowns to the left of me, Jokers to the right ♫♫♫ | |||
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Alea iacta est |
J3E, that is fantastic. I love it. I’ll print this out to share with a couple of employees that have no comprehension of how this all works. All I hear them saying is that Trump prints money and puts us farther in debt. Hopefully this will clear thing up for them a little bit. The “lol” thread | |||
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Hoping for better pharmaceuticals |
" simple," From the US government?  Getting shot is no achievement. Hitting your enemy is. NRA Endowment Member . NRA instructor | |||
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| probably a good thing I don't have a cut |
I checked my account at the credit union today and see a direct deposit of $1200 dated for the 15th from the IRS. Anyone else? | |||
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| Member |
Perhaps I have misunderstood but I thought that it was a no strings attached check or direct deposit to use as you see fit. Pay current or past due bills. Leave it in the bank for the leaner times that are ahead. Withdraw $1200.00 and put between the mattress or stick in a fire safe at home. Just as long as you met the income parameters for single people or married couples. The national debt should never be mentioned again by a political party or politician. Eeeesh! It is going to be astronomical. | |||
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| Member |
No, Stimulus checks are non-taxable and you do not need to pay it back. I saw on the news that if you haven't received a deposit in your account by Wednesday, to go to the IRS.GOV website and fill out your info (banking etc.) Here: https://www.irs.gov/coronaviru...omic-impact-payments | |||
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Member |
Has anybody figured out that our government is basically paying us to stay home and do nothing? Which I have noticed is something many here have been complaining about it doing for years with welfare... Guess what? they just got us all hooked.... My Native American Name: "Runs with Scissors" | |||
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Ammoholic |
If that is the case they owe me a few more checks. All these stimuli are going to lower our debt rating and cause inflation. Trump (though not his fault) will go down as the all time king of national debt (by a lot). I still don't know why students and the retired are getting checks when they've lost zero income. Or a family of two that both can work from home. Jesse Sic Semper Tyrannis | |||
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Member |
I show $2400 direct deposit pending into my CU account currently. Regards, Will G. | |||
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