Posted on 04/16/2020 7:21:46 AM PDT by hardspunned
It is my understanding that the stimulus check is actually an advance upon a 2020 tax year tax credit. If that’s true and you receive a check based on your 2019 AGI but your 2020 AGI is high enough to disqualify you, do you owe the advance back to the IRS. Also if a baby is born this year after you get your check will you be able to collect its $500 on your 2020 taxes?
You do not have to give the money back.
Exactly, why do you believe that?
I think he may be correct. If you earned more than $75,000 isn’t it a different program and becomes taxable?
Someone has to pay this money back. If not you ( higher taxes and inflation) then your children.
IOW, if next years tax refund is less than $2400, you owe nothing and you get nothing...
If you make over those amounts and you are in one of those classifications, then you get nothing, otherwise, you get 1,200.00 per person.
Any child born this year will be paying it back for the rest of his or her life. So will their children and grandchildren and greatgrandchildren... Invest your money in the Nasdaq and give the fund to them when they come of age.
Thanks for the clarification. I think this is what the OP was trying to sort out.
It posted to my bank account as “IRS TREAS 310 TAX REF”.
Actually it’s prorated.
No. That’s not what it is
https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
“Who is eligible for the economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.”
And there you have it — six or seven different answers.
This link says there’s confusion because it’s labeled as a tax credit, but is not taxable and will not be deducted from next year’s returns (or added so folks who paid less taxes might ordinarily have to pay more.)
If an individual made more than $75k, the amount gets reduced by $5 per $100 over that amount up to $99,999.
Those amounts are doubled for married filing couple.
True, I was providing the short answer because if these people are too lazy to look it up themselves then I have no real time to give them the complete answer. 8>)
Reduced 5 per 100
The payment — which the IRS is calling an “economic impact payment,” the government has named a “recovery rebate,” and many people are calling a “stimulus check” — is technically an advance tax credit meant to offset your 2020 federal income taxes.
This, from Business Insider.
Again my question, if you make $70,000 in 2018, qualify and get your tax credit advance but make $125,000 in 2020 (the year you must be eligible for the credit) and don’t qualify, what happens?
trebb has the correct answer.
You will NOT have to pay it back even if your 2020 income is higher than your 2019 income and thus might have made you eligible for less, or none.
(The other broader point about budget deficits that have to be paid back by our children, etc, is outside the purview of this question, but is a fine point otherwise.)
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