Stimulus checks

[mcpapa]

Sheesh. I usually owe a couple hundred. I’ll stop complaining about it now.

I’m not crazy about writing that check every April 15. I’ll milk the extended deadline for all it’s worth.

[rjs4470]

Thats what I was told as well. I'm curious at what percentage this will be taxed at when that time comes though. I'm feeling like it will be taxed similar to a work related bonus which is 40% for my better half. People need to realize that before they just spend it all and figure it out later. Hence why we moved the majority of ours to savings.

 

It’s my understanding that this is not taxable. It’s considered an advance of a tax credit.

[JDEaston]

It’s my understanding that this is not taxable. It’s considered an advance of a tax credit.

 

An advance of tax credit sounds like something that will need to be paid back, in taxes or interest at a later date. Next tax season possibly?

[sportsfan41]

An advance of tax credit sounds like something that will need to be paid back, in taxes or interest at a later date. Next tax season possibly?

 

We debated this earlier in a group chat with some buddies. The way I understood the explanation was that it was a one time tax credit that goes towards next year but doesn't impact those taxes. Initially the individual who came to that conclusion had thought of it as being an advance to be withheld on future returns but after some research found that wasn't the case.

[coldweatherfan]

An advance of tax credit sounds like something that will need to be paid back, in taxes or interest at a later date. Next tax season possibly?

 

From what I heard in a discussion on the radio today, it is a tax credit and is not taxable. Pretty much the same way that the earned income tax credit that some people get is not taxable. He could be wrong, but it was one of the financial guys on the radio saying it.

[DanvilleFan]

Haven't gotten mine yet but we'll use it to pay off one of my wife's credit cards, spend a little on some deck furniture, and then save the other half. Thankfully we've both got jobs still going at this time so we can treat this as a bonus.

[Hangman]

Our intention is to save ours once received until we ensure we have kept our jobs and don’t need the money to live off off.

 

After that, we’ll be replacing some flooring.

[Hellcats]

Just got mine when I checked this morning.

I'm thinking a freezer and save the rest.

Edited April 15, 2020 by Hellcats

[rjs4470]

An advance of tax credit sounds like something that will need to be paid back, in taxes or interest at a later date. Next tax season possibly?

 

No it does not need to be paid back, nor is it taxed. Otherwise, it wouldn't be a "credit" If it needed to be paid back, it would put a big burden on all the lower income (and even middle class folks) come next tax season. This is a rumor that got started in social media. You can do a quick google search that will give you a million results explaining how this whole thing works. Here is one of the better ones--

 

Don’t Worry. The $1,2

[rjs4470]

Just got mine when I checked this morning.

I'm thinking a freezer, and save the rest.

 

Mine just hit this morning as well.

[BlueTip]

We received our deposit overnight and like some of the others here, we got nothing for our 2 college students though they would have qualified as dependents under the old 'personal exemption' rules. Sucks. It's not like it's a free ride having a 19 year old child at home vs. 16 year old.

[Hellcats]

We received our deposit overnight and like some of the others here, we got nothing for our 2 college students though they would have qualified as dependents under the old 'personal exemption' rules. Sucks. It's not like it's a free ride having a 19 year old child at home vs. 16 year old.

 

Right! The 19 year old is way more expensive!!

Who in their right mind decided that 17-24 year olds didn't deserve anything? A good portion of those kids are some of the most displaced: Schools closed, service jobs closed.

[Getslow]

No it does not need to be paid back, nor is it taxed. Otherwise, it wouldn't be a "credit" If it needed to be paid back, it would put a big burden on all the lower income (and even middle class folks) come next tax season. This is a rumor that got started in social media. You can do a quick google search that will give you a million results explaining how this whole thing works. Here is one of the better ones--

 

Don’t Worry. The $1,2 Stimulus Payment Won’t Cut Into Your Tax Refund Next April

 

Bottom line this will have no impact at all come next year when doing your taxes.

 

The only potential impact it could have is that as a future credit, certain people who didn't qualify based on prior years' AGI may actually be eligible due to changes in circumstance in 2020. That is to say, my understanding is that if you don't qualify now but your AGI for 2020 turns out to be below the threshold even if your 2019 wasn't, you may be eligible for the credit when you actually file your 2020 return next year.

Edited April 15, 2020 by Getslow

[BlueTip]

Right! The 19 year old is way more expensive!!

Who in their right mind decided that 17-24 year olds didn't deserve anything? A good portion of those kids are some of the most displaced: Schools closed, service jobs closed.

 

Exactly.

[rjs4470]

Right! The 19 year old is way more expensive!!

Who in their right mind decided that 17-24 year olds didn't deserve anything? A good portion of those kids are some of the most displaced: Schools closed, service jobs closed.

 

Me too. I have a 23 year old in Grad School, and a soon to be 21 year old. Luckily, my 23 year old is now receiving unemployment, and with the extra $600, he's actually now in very good shape financially. My 20 year is working, but I'm still paying for car, college, food etc, as he lives with us.