Author Happy Lemming Posted April 13, 2020 Author Share Posted April 13, 2020 I use my Federal Income Tax Refund to pay my County Real Estate Taxes, so it is actually a very important part of my budget and (Overall) tax planning for the year. Link to post Share on other sites
carhill Posted April 13, 2020 Share Posted April 13, 2020 When filing 2019 taxes, compute your marginal tax rate and apply to the stimulus payment as an offset to a potential refund, as a safety factor, when projecting 2020 numbers. As example, if marginal rate is 10%, then 120.00. 25%, 300.00, etc, etc. Link to post Share on other sites
FMW Posted April 13, 2020 Share Posted April 13, 2020 This Forbes article says it WON'T reduce your refund next year. https://www.forbes.com/sites/advisor/2020/04/06/dont-worry-the-1200-stimulus-payment-wont-cut-into-your-tax-refund-next-april/#56bdc3d35ea8 Link to post Share on other sites
carhill Posted April 13, 2020 Share Posted April 13, 2020 Yeah, I've been posting that stuff but some people are worried it's wrong so hey, alternative analytical method based on 44 years of tax planning as the son of a CPA. IMO, people should worry about staying healthy and keeping food on the table. The tax stuff will work itself out later. Link to post Share on other sites
Ellener Posted April 13, 2020 Share Posted April 13, 2020 4 hours ago, Happy Lemming said: I use my Federal Income Tax Refund to pay my County Real Estate Taxes, so it is actually a very important part of my budget and (Overall) tax planning for the year. Right. I budget my Estimated tax to balance closely every year, like I say usually within $100. I wouldn't worry too much this year though, maybe set it aside anyway if possible, but a lot of people are going to have to wait for their money after this. Link to post Share on other sites
Ellener Posted April 13, 2020 Share Posted April 13, 2020 This is what Snopes fact-checking website now says https://www.snopes.com/fact-check/covid-stimulus-check/ This is just relating to the $1200 stimulus payments, as far as I can find out any other SBA or disaster unemployment benefits are taxable income. Link to post Share on other sites
Ellener Posted April 13, 2020 Share Posted April 13, 2020 The IRS installed a dedicated page for the stimulus payment, the 'get my payment' button will be working mid-April apparently https://www.irs.gov/coronavirus/economic-impact-payments Link to post Share on other sites
introverted1 Posted April 13, 2020 Share Posted April 13, 2020 5 hours ago, Happy Lemming said: So does that mean that the $1200 will be some sort of income (taxable income, line 11b on Form 1040) for 2020 (when I file in April, 2021) or will it be part of my actual tax liability that is calculated (lines 12a thru line 16 on From 1040)?? I wonder if the IRS will add a line to the 2020 Form 1040?? Please and Thank You! It sounds like there will be a new line for this credit on the 2020 return. From what I've read, the amount won't be taxed, nor taken back if, for example, your 2019 income ended up exceeding the upper limit. And if you have a baby in 2020, you can apply to have the amount you received increased by the $500 that baby brings. Please don't rely on my interpretation, though. I'm just sharing what I've read. I am not a tax adviser and don't even play one on TV. 1 Link to post Share on other sites
carhill Posted April 13, 2020 Share Posted April 13, 2020 OTOH, maybe we shouldn't trust Forbes because it's now owned by a Hong Kong investment consortium, who knows if the Chicoms have their fingers in it. It could be a trap! 👍 Business stuff, loans are loans. The money isn't income, it's proceeds from an agreed upon debt to be repaid. Forgivable grants, presuming meeting the parameters, can be reportable income depending on business type, taxation depends on the business financial matrix. Some businesses plan to have no taxable income. Goes on all the time. Still not seeing marked rays of sunshine on the SBA stuff. PPP, loans, grants, etc, delays and roadblocks. I was afraid of that. The big businesses that deal with Treasury direct will have an easier time. GM, Ford, Boeing, etc. Link to post Share on other sites
Ellener Posted April 13, 2020 Share Posted April 13, 2020 1 hour ago, carhill said: loans are loans. The money isn't income, it's proceeds from an agreed upon debt to be repaid. Forgivable grants, presuming meeting the parameters, can be reportable income depending on business type, taxation depends on the business financial matrix. Some businesses plan to have no taxable income. Goes on all the time. Still not seeing marked rays of sunshine on the SBA stuff. PPP, loans, grants, etc, delays and roadblocks. I was afraid of that. The big businesses that deal with Treasury direct will have an easier time. GM, Ford, Boeing, etc. As a contractor I can now claim emergency unemployment benefits, I haven't decided if I need to or not. Just because I can doesn't mean I should is my motto with such things! I want the facts first. And to read carefully the fine print. Example: anyone who is buying 'Obamacare' in any of the states which did not expand Medicaid are supposed to declare a minimum income to qualify for subsidies, it's around $13 K and you're not allowed to be eligible to be claimed on someone else's taxes. I've watched several people I know mess with tax returns and sail close to the legal line but it will mount up with the penalties if it has to be later repaid. 'Fiddling while Rome burns' may have consequences! Link to post Share on other sites
carhill Posted April 13, 2020 Share Posted April 13, 2020 One compadre got their PPP loan approved and it should be funded in a few days 👍 I'm an expert at the ACA game, been playing it for years. Off-topic here though. You can review my very long and detailed thread on health care, and even post to it, on that topic. In stimulus related news, the west coast governors are getting ready to present a re-opening plan, I'll link the article in another post. Good news! Quote Newsom provided few details of his plan on Monday, saying it would be an “incremental release of the stay-at-home orders,” a decision made in coordination with the governors of Washington and Oregon that will use “science to guide our decision-making and not political pressure.” Link to post Share on other sites
carhill Posted April 13, 2020 Share Posted April 13, 2020 PBS article on re-opening... https://www.pbs.org/newshour/nation/newsom-says-california-will-release-plan-on-lifting-virus-constraints Link to post Share on other sites
carhill Posted April 14, 2020 Share Posted April 14, 2020 The governors, in their decisions, will necessarily be mindful of Article One, Section Ten, of CONUS where it states, in part... Quote No state shall, without the consent of Congress, lay any duty of tonnage, keep troops, or ships of war in time of peace, enter into any agreement or compact with another state, or with a foreign power, or engage in war, unless actually invaded, or in such imminent danger as will not admit of delay. Link to post Share on other sites
Ruby Slippers Posted April 14, 2020 Share Posted April 14, 2020 My $1,200 was direct deposited this morning. I'll move it to my savings account for now. 2 Link to post Share on other sites
Author Happy Lemming Posted April 14, 2020 Author Share Posted April 14, 2020 1 hour ago, Ruby Slippers said: My $1,200 was direct deposited this morning. I'll move it to my savings account for now. Good to know... I checked my bank account this morning, nothing there (yet). I just read the IRS (help) page and it said to do nothing if your filed your 2018 & 2019 taxes, so I'll wait and see what happens. Thanks, Ruby... Link to post Share on other sites
carhill Posted April 14, 2020 Share Posted April 14, 2020 It appears EFT's are using another methodology than AGI level, likely alphabetical or keying on TIN. In my case, online access was down from 3am to 6am and there was no deposit prior and one after so it processed somewhere in that timeframe. Mostly likely taxpayers with stimulus coming and who had prior used ACH for their tax returns should have their deposit by tomorrow. Others will follow separate paths. Link to post Share on other sites
Ruby Slippers Posted April 14, 2020 Share Posted April 14, 2020 Yes, if you're set up for direct deposit, it shouldn't be long now. Link to post Share on other sites
Author Happy Lemming Posted April 14, 2020 Author Share Posted April 14, 2020 Thanks @carhill and @Ruby Slippers Yes... I filed my 2019 taxes in late February and promptly received my refund (direct deposited) into my checking account. Similar to you, Ruby... I'll move it to savings when the money arrives, (for a rainy day). 2 Link to post Share on other sites
alphamale Posted April 14, 2020 Share Posted April 14, 2020 On 4/11/2020 at 2:38 PM, carhill said: I'd go as normal, leave the 1200 out of the calc, and deal with it next year. #metoo Link to post Share on other sites
alphamale Posted April 14, 2020 Share Posted April 14, 2020 1 hour ago, Ruby Slippers said: My $1,200 was direct deposited this morning. I'll move it to my savings account for now. that'll barely cover my electric and cable for one month Link to post Share on other sites
Author Happy Lemming Posted April 15, 2020 Author Share Posted April 15, 2020 *** UPDATE *** My stimulus payment of $1,200 showed up in my bank account, this morning. So, I guess the payments are starting to go out. The IRS deposited the money into the checking account I used for my 2019 Federal Tax Filing (Refund). Link to post Share on other sites
CautiouslyOptimistic Posted April 15, 2020 Share Posted April 15, 2020 Mine did too. 1 Link to post Share on other sites
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