Questions about muh check

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Will it be tax free?

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It’s an advance on a refundable 2020 tax credit. It reduces tax burden. You will get the 500 for that kid in the form of a tax credit when you file next year.

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I have a kid born in 2018, and a kid born this year. Wife and I both work, make slightly under 150k So I’ll get a check for 2,900? Then a $500 tax credit next year when filing for the second baby? Also, this $2,900 check is not taxable income being that it’s an advance on a tax credit?

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The advance will be based on your 2019, or if you have not filed that your 2018 return. It will not be taxed.

So I’ve seen the calculation if your AGI is between $150k-$198k filing jointly, to calculate how the $2400 goes down but if you have a child and your AGI is between $150k-198k do you get the full $500 per child or is there a calculation for that as well?

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but if you have a child and your AGI is between $150k-198k do you get the full $500 per child or is there a calculation for that as well?

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The $500 per dependent is NOT phased out for income. If you made $17,000,000 last year and have 3 kids under age 17, you would still get $500 per kid.

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Is the $500 credit per kid in addition to the regular $2,000 dependent credit? Or is the $2,000 being lowered to $500 for this year?

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Additional

Awesome!

How will this $2,400 affect my 2019 tax return when I file next year.

Typically we get back around 6-7k on a normal year.

So let’s say Joe Blow makes 60k a year, has no kids or wife.

Every year when he files he owes $1,000.00.

He gets this stimulus check of $1,200.00 now. When he files next spring for 2020, does he still owe $1,000 same as normal just like nothing ever happened?

Incorrect according to a CPA I just asked. Says it will not affect normal refund next year at all.
Says this stimulus check is the equivalent of finding cash in an envelope on the ground.


Because of the fact that it’s a new 1 year only 2020 tax credit adding to the existing refund you will get next year. This said amount will be advanced to you now thus not affecting next years refund one penny from what it would have been had corona not happened at all.

Also says if your kid turned 17 during 2019, you don’t get the 500. If your kid turns 17 during 2020, you get the 500 and it does NOT have to be paid back.

He might have incorrectly thought he knew.

Kinda like the man who thought he farted but shat himself.