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Logistics of Stimulus Check Revealed
Posted on 3/26/20 at 6:40 am
Posted on 3/26/20 at 6:40 am
Didn’t see this on the front page of the board here, but I just read from Market Watch that stimulus checks would be sent direct deposit using your bank account information on your 2019 tax return (if filed) or your 2018 tax return. I would assume from that if you did not do direct deposit or you had to pay that they will use the address.
It was also clarified that the income thresholds would be determined using your AGI. Not taxable income. This means your gross income less above the line deductions. Above the line deductions are typically smaller deductions and less common for the average taxpayer compared to the standard or itemized deductions. So if you are MFJ with 2 kids and your taxable wages in 2019 were 120K and you had no other sources only income and you had no above the line deductions, your AGI is 120K. If you used the standard deduction then your deductions are 24K (appx). So your taxable income is 96K. The stimulus check will be determined using 120K not 96K for purposes of illustration.
Hope this clears it up a bit. For me, I already filed my 2019 taxes and I got a small refund so I used direct deposit so my situation is pretty clear. Others may have a bit trickier of a situation.
Let’s say you have not filed 2019 yet. So your money would be sent based on your 2018 tax return. However for 2018 you had write a check. So no direct deposit info is on the return. Also, you have since moved from the address on your 2018 return. How would a paper check find it’s way to you? I am assuming they’ll set up some kind of system for this. We shall see.
Submit an address change with the IRS if things have changed: LINK
It was also clarified that the income thresholds would be determined using your AGI. Not taxable income. This means your gross income less above the line deductions. Above the line deductions are typically smaller deductions and less common for the average taxpayer compared to the standard or itemized deductions. So if you are MFJ with 2 kids and your taxable wages in 2019 were 120K and you had no other sources only income and you had no above the line deductions, your AGI is 120K. If you used the standard deduction then your deductions are 24K (appx). So your taxable income is 96K. The stimulus check will be determined using 120K not 96K for purposes of illustration.
Hope this clears it up a bit. For me, I already filed my 2019 taxes and I got a small refund so I used direct deposit so my situation is pretty clear. Others may have a bit trickier of a situation.
Let’s say you have not filed 2019 yet. So your money would be sent based on your 2018 tax return. However for 2018 you had write a check. So no direct deposit info is on the return. Also, you have since moved from the address on your 2018 return. How would a paper check find it’s way to you? I am assuming they’ll set up some kind of system for this. We shall see.
Submit an address change with the IRS if things have changed: LINK
This post was edited on 3/26/20 at 10:12 am
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Posted on 3/26/20 at 6:45 am to RiseUpATL
I’ll ask the same question I asked in another thread. I have not filed for 2019. In 2018 I filed a regular return (using my ssn) which would put me in the check category. I also had to file a trustee return (uses a EIN I believe so not affiliated with my ssn) if you put the two together I would not be in the check category but will they just being using my return with my ssn on it to determine?
Posted on 3/26/20 at 6:46 am to RiseUpATL
What if I paid my 2018 taxes with a draft from my bank account? Could they not just direct deposit it into that account I paid from?
Posted on 3/26/20 at 6:48 am to piggilicious
quote:
I’ll ask the same question I asked in another thread. I have not filed for 2019. In 2018 I filed a regular return (using my ssn) which would put me in the check category. I also had to file a trustee return (uses a EIN I believe so not affiliated with my ssn) if you put the two together I would not be in the check category but will they just being using my return with my ssn on it to determine?
Are you asking about income that you earned for serving as a trustee? Are you a trust beneficiary? I don't understand what you're asking.
Posted on 3/26/20 at 6:48 am to RiseUpATL
Doubt I’ll get shite, but do they have the scale up? Like how much the tiers are above 75k up to 99k?
Posted on 3/26/20 at 6:51 am to Mo Jeaux
Sorry, I’m a trust beneficiary- family farm trust that generates some income. I really need to pull out my taxes and look- seems like I paid for earnings in the trust and then had to pay on my individual for the distributions of those earnings to me??? Would that make sense? We’ve only had the trust a few years so I’m not too brained when it comes to it.
Posted on 3/26/20 at 6:54 am to piggilicious
Yes, I would think that generally the income received from the trust would be reported on your personal income tax return.
Posted on 3/26/20 at 6:55 am to Lsut81
quote:
Doubt I’ll get shite, but do they have the scale up? Like how much the tiers are above 75k up to 99k?
everything i had seen before was your check decreased by $5 for every $100 you make over $75K... So for every 5K over 75 your stimulus check is $250 less.
Posted on 3/26/20 at 6:57 am to Mo Jeaux
Make sense because I recall thinking then I pretty much got double taxed for it.
Hmm, maybe I was wrong all along and my individual will put me over the limit due to that. I’m not going to cry, I’ll be fine without it but I’ve been working while half the country is in their pj’s so it was my one perk, aside from job security. I know that’s kind of assholish but sometimes it comes out.
Hmm, maybe I was wrong all along and my individual will put me over the limit due to that. I’m not going to cry, I’ll be fine without it but I’ve been working while half the country is in their pj’s so it was my one perk, aside from job security. I know that’s kind of assholish but sometimes it comes out.
Posted on 3/26/20 at 7:24 am to RiseUpATL
quote:
you have since moved from the address on your 2018 return
Or even since 2019 return? Changed Bank account? Gotten a divorce?
Posted on 3/26/20 at 7:37 am to RiseUpATL
Is it still 75k for an individual and 150k for a couple?
Posted on 3/26/20 at 7:44 am to RiseUpATL
quote:
I just read from Market Watch that stimulus checks would be sent direct deposit using your bank account information on your 2019 tax return (if filed) or your 2018 tax return.
So we know for sure that if you filed 2019 already they would use your 2019 filing and if you haven't filed yet for 2019 they would use 2018's filing? or is this just speculation.
Posted on 3/26/20 at 8:03 am to Snipe
According to the article that is for sure. If you have filed your 2019 return they will use that information. Essentially, they are going to use the most up to date information they have. Obviously thats determined by your latest tax filing. Since everything is Efiled, the records are updated as soon as your return is accepted.
This post was edited on 3/26/20 at 8:05 am
Posted on 3/26/20 at 8:06 am to Lsut81
quote:
Doubt I’ll get shite, but do they have the scale up? Like how much the tiers are above 75k up to 99k?
The check gets cut by $50 for every $1,000 above $75k
Posted on 3/26/20 at 8:09 am to Old Hellen Yeller
quote:
The check gets cut by $50 for every $1,000 above $75k
What about above 150k for joint file?
Posted on 3/26/20 at 8:11 am to piggilicious
So you filed a trust return. They will not use that EIN for your threshold. Trusts are either taxed or they pass out income on a K-1 that you report on your individual return. Trusts are tax paying entities. So if the trust earns the income and pays the tax, none of the income goes to the beneficiaries (you). So none of that income is on your return, thus not included in your income. If you filed your 2018 tax return and did not get a K-1 from the trust then that says to me the trust reported them income and paid the tax. So that income stays with the trust. In no way would the IRS combine the two. That’s not how it works. The only way then the IRS could link the trust income to your tax return would be the K-1 which reports the trusts EIN and lists you and your SSN on the k-1. If there was no K-1 then there is no way they’ll know. But if there was a K-1 you would have reported your share of trust income on your return in 2018 anyways.
Posted on 3/26/20 at 8:17 am to RiseUpATL
Thank you for the info- I’m going to pull out my 2018 tax returns tonight. I may reply back to this thread when I do.
Posted on 3/26/20 at 8:21 am to piggilicious
In case you couldn’t tell I am a CPA that specializes in tax. Happy to answer any questions.
Posted on 3/26/20 at 8:25 am to RiseUpATL
So if I filed in 2018 and made 75k but then filed for 2019 and made 100k+ I’m SOL? But if I just hadn’t filed yet I’d be getting money?
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