$2 Trillion relief package - are seniors getting paid

[tompalm]

i am still trying to figure out the details of the relief package. It says people earning money will receive checks. Therefore, I assume anyone that didn’t have earned income for their 2018 tax return will not receive a check. I also assume that seniors on social security will not receive a check. I hope I am right about the details. A few seniors I know are excited about getting free money and that would be a waste, we should be getting social security. What are the facts? Thanks.

https://apple.news/Ajq8eaosEOZ2kPo_9HQRB7Q

 

[turkel]

Payments are correlated to income. Not everyone will get a check. Since seniors collecting SS aren’t out of work I don’t believe they will get a check.

I am glad payments phase out at higher incomes. The money should go where it is needed with those whose income has been effected.

 

[dioxide45]

From what I can tell in the bill, it is based strictly on Adjusted Gross Income, not earned income. As long as you are a resident alien or citizen and not used as a dependant or deduction on someone else's return, you are eligible. Of course, reading and understanding bills isn't my fortay.

Something tells me when all is said and done, this will mess up people's expected tax refunds that they would get for the 2020 tax year when they file in early 2021.

SEC. 2201. 2020 RECOVERY REBATES FOR INDIVIDUALS.
(a) In General.--Subchapter B of chapter 65 of subtitle F of the
Internal Revenue Code of 1986 is amended by inserting after section
6427 the following new section:
``SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by subtitle A for
the first taxable year beginning in 2020 an amount equal to the sum
of--
``(1) $1,200 ($2,400 in the case of eligible individuals filing
a joint return), plus
``(2) an amount equal to the product of $500 multiplied by the
number of qualifying children (within the meaning of section 24(c))
of the taxpayer.
``(b) Treatment of Credit.--The credit allowed by subsection (a)
shall be treated as allowed by subpart C of part IV of subchapter A of
chapter 1.
``(c) Limitation Based on Adjusted Gross Income.--The amount of the
credit allowed by subsection (a) (determined without regard to this
subsection and subsection (e)) shall be reduced (but not below zero) by
5 percent of so much of the taxpayer's adjusted gross income as
exceeds--
``(1) $150,000 in the case of a joint return,
``(2) $112,500 in the case of a head of household, and
``(3) $75,000 in the case of a taxpayer not described in
paragraph (1) or (2).
``(d) Eligible Individual.--For purposes of this section, the term
`eligible individual' means any individual other than--
``(1) any nonresident alien individual,
``(2) any individual with respect to whom a deduction under
section 151 is allowable to another taxpayer for a taxable year
beginning in the calendar year in which the individual's taxable
year begins, and
``(3) an estate or trust.

 

[pedro47]

Excellent point how will this stimulus check be enter on your 2021 tax form?
The federal government will needs all this money back as some point in time in the future.

 

[talkamotta]

I saw adjusted gross income not earned income. I was hoping to get it so it would help pay my taxes this year. If I dont get it well I guess I will just call the wambulance on me. Im on social security with a pension so I didnt take a hit on my income. My father owned a restaurant while I was growing up and I know how hard it is for small businesses. So far Im getting in my two weeks of isolation but I think I will start getting take out item from the local restaurants. After this is over I will make a point to shop those places that have gone out of their way to in this time of crisis. I will remember the locals and I will buy made in America. To go a little off topic....it scares me that our medicines are made out of the country. I hope we change this.

 

[tompalm]

This just came out. Looks like everyone gets it. Based on 2019 returns. Too much info to post. Thank you N.Y. Times.

F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Plan

The $2 trillion relief package is sending money directly to Americans, greatly expanding unemployment coverage and making a number of other changes.

www.nytimes.com

 

[IngridN]

Yes, it's based on AGI. If you file tax returns electronically and have payments/refunds directed to bank account, that's how the $ will come to you. If not, then check.

 

[controller1]

. . .

Something tells me when all is said and done, this will mess up people's expected tax refunds that they would get for the 2020 tax year when they file in early 2021.

. . .

This just came out. Looks like everyone gets it. Based on 2019 returns. Too much info to post. Thank you N.Y. Times.

F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Plan

The $2 trillion relief package is sending money directly to Americans, greatly expanding unemployment coverage and making a number of other changes.

www.nytimes.com

Per the above article, Federal Income Tax will not be owed on the amount received. It also states those on Social Security will receive the stimulus payments.

 

[Ralph Sir Edward]

Anybody know where the details for the unemployment additions are located? I looked at the bill late yesterday, but I could not find them. Another Bill?

 

[dioxide45]

Anybody know where the details for the unemployment additions are located? I looked at the bill late yesterday, but I could not find them. Another Bill?

Looks like it starts on page 84;

FINAL FINAL CARES ACT | DocumentCloud

beta.documentcloud.org

 

[rapmarks]

If this is based on 2019 income tax return,anyone that hasn’t filed yet will not get the stimulus?

 

[dioxide45]

If this is based on 2019 income tax return,anyone that hasn’t filed yet will not get the stimulus?

It is supposed to be based on tax year 2019, unless you haven't yet filed, then it would be based on 2018. They can never make this easy to figure out, but this is some text from the bill;

‘‘(f) ADVANCE REFUNDS AND CREDITS.— ‘‘(1) IN GENERAL.—Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.

ALTERNATE TAXABLE YEAR.—In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may - ‘‘(A) apply such paragraph by substituting ‘2018’ for ‘2019’, and ‘‘(B) if the individual has not filed a tax return for such individual’s first taxable year beginning in 2018, use information with respect to such individual for calendar year 2019 provided in— ‘‘(i) Form SSA-1099, Social Security Benefit Statement, or ‘‘(ii) Form RRB-1099, Social Security Equivalent Benefit Statement.

 

[Luanne]

This just came out. Looks like everyone gets it. Based on 2019 returns. Too much info to post. Thank you N.Y. Times.

F.A.Q. on Stimulus Checks, Unemployment and the Coronavirus Plan

The $2 trillion relief package is sending money directly to Americans, greatly expanding unemployment coverage and making a number of other changes.

www.nytimes.com

Based on 2019 returns? Many people haven't even filed yet. I'd heard it was going to be based on 2018 returns. (Haven't read the article you posted yet)

 

[dioxide45]

Based on 2019 returns? Many people haven't even filed yet. I'd heard it was going to be based on 2018 returns. (Haven't read the article you posted yet)

See my prior post #12.

 

[Luanne]

See my prior post #12.

Read that after I posted, thanks.

What is still unclear to me is what is whoever is doling out this money using? Are they using 2019 tax data, if it exists, and if not using 2018? We haven't filed 2019 yet, and with the extension I have no idea when it will be filed. Dh and I won't be getting any money, but dd will.

 

[b2bailey]

I'm not going to expect a check, so if I receive one I will be over-joyed.

 

[VacationForever]

I wonder what is the cutoff for 2019 tax returns for this purpose. If you expect to be eligible using 2019 and not 2018, and you have not filed, you should file 2019 now. Cutoff date is not mentioned.

 

[Ralph Sir Edward]

Looks like it starts on page 84;

FINAL FINAL CARES ACT | DocumentCloud

beta.documentcloud.org

Thanks, just what I was looking for.

 

[Luanne]

I wonder what is the cutoff for 2019 tax returns for this purpose. If you expect to be eligible using 2019 and not 2018, and you have not filed, you should file 2019 now. Cutoff date is not mentioned.

I thought the checks were going to be issued "soon". Would you even have time to file, and have them processed, before then?

 

[Talent312]

We'll use our payments to refund a portion of the RMD's already taken.
The question is: Where will we invest the $$ added back to our IRA's?
.

 

[VacationForever]

I thought the checks were going to be issued "soon". Would you even have time to file, and have them processed, before then?

Verbiage in the stimulus package says they have up until Dec 31st 2020 to pay. Realistically I think they will take a month.

 

[VacationForever]

We'll use our payments to refund a portion of the RMD's already taken.
The question is: Where will we invest the $$ added back to our IRA's?
.

I don't believe you can refund RMD but you can use that amount to rollover to Roth IRA within 60 days of withdrawal.