Is that $1200 check we're getting another advance against future IRS refunds?

[stopbush]

I remember that from the bush “rebate.” The money they sent was deducted from your IRS refund the next year. If you owed $, they added the “rebate” back onto what you owed.

I’m hearing mixed messages on this. Anyone know for sure?

[elleng]

1. No, it is not.

[Turin_C3PO]

2. I've heard it's not

but I don’t have a link.

[CurtEastPoint]

3. Is it taxable income?

[unblock]

5. not 100% sure, but my understanding is yes, it is.

[Marrah_Goodman]

6. No

It is not considered income.

It is an advance on a special tax credit that will be on the 2020 forms. It is not taxed and you won't get any less of a refund then you would have had without it.

[Marrah_Goodman]

4. It is an advance on a special credit on 2020 taxes

You won't have to pay taxes on it and you won't get less of a refund then you would have had they not done this.

[stopbush]

10. Ok.

[lpbk2713]

7. Is it automatic for anyone who filed a return for 2018?

Or do we have to apply for it?

[stopbush]

9. Automatic for 2018 or 2019, depending if you filed 2019.

If you filed 2018 and 2019, they go by 2019 to determine eligibility. If you have filed 2018 but not 2019, they go by 2018. If you have not filed either, you need to file a return for one of those years to get the $1200.

[Marrah_Goodman]

11. It is automatic.

It looks for your 2019 return. If you didn't file in 2019 yet it will then look at your 2018 return. Then the check is deposited in the account you got your refund in or if you didn't use direct deposit or no longer have that bank account a physical check will be mailed to you.

[wishstar]

12. It's automatic if you filed 2018 or 2019 returns

Mnuchin also said that anyone who wants to change or submit direct deposit info will be able to do that in next week or two with a special form IRS will be providing to help speed up payments.

[ProfessorGAC]

13. If You Filed...

...in 2019, they use that. If you haven't filed that yet, they're using the 2018 to determine how much you get.
If on SS and were below the limit for filing, the use the SS 1099 to determine eligible amount.
If you're single and household income is <$75,000, you get $1,200. Just double the numbers for married filing jointly.
From $150,000 to 199,999 the amount drops off. Based on what my wife and I will get, it seems like a linear drop off.
You don't need to apply.

[smirkymonkey]

17. Do you know how long it will take to receive if you are getting a direct deposit amount?

I'm not getting that much, but it beats a sharp stick in the eye.

[ProfessorGAC]

18. Good Question!

I don't think I heard anything more than 4 to six weeks.
Don't know if DD is happening, though.
It's being handled by Treasury, not the IRS. Would they have deposit & routing numbers? Or are they going to send checks?
I'll see what I can find & will post something tonight or tomorrow.

[smirkymonkey]

19. Thanks Professor GAC!

I appreciate it!

[Marrah_Goodman]

20. They are using the bank information from the tax returns if you used direct deposit.

If SS, SSI or SSDI are your only sources of income and you did not file taxes they will use the bank account your monthly deposit goes in.

[ProfessorGAC]

21. Cool

Thanks Marrah!
Just got done eating and haven't looked yet.
Saved me the trouble.

[lpbk2713]

14. Thanks all ...

That clarified it for me.

[wishstar]

8. Those with higher 2020 income making them go over thresholds might not get to keep it all

For instance if someone reports higher 2020 income than their 2018 or 2019 income and they are over the income limits, they would not be able to use the entire credit allowed against their stimulus payment and could owe some or all of it back.

[Jirel]

15. Yes, it is.

A CPA friend has been putting out info on this.

[customerserviceguy]

16. No, but

there will be an income "test" on 2020's tax forms, I'm sure. Say that a person made under $75K in either 2018, or 2019, if that year's return has been filed and is available. That individual would get a payment of $1200.00. Now, suppose that in 2020, the same person makes over $75K, then a calculation would be done to figure out the excess payment, and that excess would be an addition to tax owed.

Not going to affect many people I know.