Home Forums Hunting & Shooting Hunter's Campfire Taxes and Last Years Stimulus

The wife just finished our taxes for last year. The $2400.00 we received in government money, reduced our return by $2000.00. So......we netted $400.00. Though we did get a little of the increased debt! memtb

They told us that was a loan....

Thought the stimulous didnt count against our returns?

if you work for a living it will

According to TurboTax.....it does! memtb

Let me get this straight: they give us our own money and then tax us again on it!?

Gonna be some surprised/angry "taxpayers" for 2020. Stimulus=income (not taxed at the time of receiving). According to verbiage not going to affect income tax...but we will see.

That was the first thing I said when they announced it.....We would see it again at tax time....taken out.

Joe

Ain't it crazy how this sh** works......or doesn't

LOL

You must be new here. Welcome to America. Don't ever forget: you are free.

The low information voter that doesn’t make enough to pay taxes in the first place won’t be effected.

Some of y'all got this all wrong. Those are "contributions", not taxes.

Now, China Joe said we gonna get two grand when they elect those two commies in Georgia. Then done been selected. Where my money, bitch?

They have backed off on that some.....

This is from MarketWatch.com.


Do I have to pay back my $1,200 stimulus check? Don’t fall for these 5 myths about the stimulus payments
Published: May 16, 2020 at 6:36 a.m. ET
By Andrew Keshner
23
‘You’re going to get the refund you qualify for, and this check.’

More than 80 million Americans should be getting stimulus checks of up to $1,200 this week. MARKETWATCH PHOTO ILLUSTRATION/[bleep]

The $2.2 trillion stimulus bill that authorized direct checks to millions of Americans is a sprawling and complicated piece of legislation — true story.

But here’s another true story: your money is yours to save, spend, invest or donate because it’s not a loan Uncle Sam is expecting you to pay back.

Stimulus checks are flowing into Americans’ bank accounts, but so are some misunderstandings on the rules for the money.

The “pay back” myth is one of them, aided by erroneous social media posts, but there are other misconceptions and questions out there about the payments that lawmakers hope will help Americans get through the coronavirus outbreak.

Here are some:

Do I have to pay the stimulus money back?
No. Full stop.

The “economic impact payment” you receive depends on how much money you make, according to either your 2018 tax return or your 2019 tax return. The 2019 return is the one that everyone has until July 15 to submit.

Individuals with adjusted gross incomes below $75,000 will get $1,200 and married couples with adjusted gross incomes below $150,000 will get $2,400. Additionally, the government will pay $500 for every qualifying child under age 17. The stimulus payments decrease $5 dollars for every $100 dollars above the $75,000/$150,000 line and ends entirely for individuals making more than $99,000 and couples making over $198,000.

See also: Why haven’t I gotten my stimulus check? 6 reasons your payment might be a no-show

When the IRS determines your payment amount, it looks at the adjusted gross income listed on the 2019 tax return. If that’s not on file, the IRS looks at what’s on the 2018 return.

You can find the status of your stimulus payment using an IRS tracking tool. If the IRS doesn’t have your direct deposit information on file, you can also get the money sooner by submitting your banking information. That’s opposed to waiting for a paper check to arrive in the mail. Read more about that process here.

Don’t miss:‘I think my son got a $1,200 stimulus payment he wasn’t entitled to. Will the IRS take the money back?’ Answers to your stimulus check questions

Some of the confusion may lie in the payment’s technical terms. The stimulus checks “are considered an advance refund of a 2020 tax credit, not a loan,” said Neal Stern, a member of the American Institute of CPAs Financial Literacy Commission.

Breaking that down, Stern said it’s a sum of money the feds are crediting to taxpayers for next tax season — except they are paying it right now, because millions need it right now.

Remember that this is technically a 2020 tax credit. That’s important for later, especially for people who might not qualify for the stimulus money now.

Does my stimulus money get applied to my tax bill if I owe taxes?
No, the IRS won’t automatically shave off your stimulus money to pay down your tax bill. That’s something the federal tax collector says itself in a link on frequently asked questions about the stimulus money.

There’s one exception. If you are behind on child support, the IRS says it will offset the stimulus check amount by the past-due child support amount.

Of course, you still need to pay your taxes. So if you owe, you may need to spend your stimulus money on taxes at that point. But the deadline to pay federal income taxes is July 15, and the feds can work out installment plans.

Another important thing to remember is that while the IRS may not take money from a stimulus payment, a private debt collector might immediately try to seize it. There are ways to avoid garnishment, experts say.

Will my stimulus payment reduce the tax refund I would normally get?
Again, no. “You’re going to get the refund you qualify for, and this check,” Stern said. “The refund you get for the normal operation of the tax code hasn’t changed.”

Your tax refund is the money returned to you because you’ve overpaid taxes throughout the year. The stimulus check is a payment that’s separate and apart from your tax obligations, the IRS explained.

Stimulus checks ‘will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year.’— Internal Revenue Service
“It will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year,” the agency said.

The average refund was $2,852 as of early April, according to IRS statistics. The average stimulus payment will come to $1,523 per household, according to the Tax Foundation.

Is my stimulus check taxable income?
No. When you win the lottery or collect certain legal settlements for example, the IRS will factor those income sources into what you’ve made during the year, and that can bump you to a higher tax bracket with a higher tax rate. But that won’t happen here.

“The payment is not income and you will not owe tax on your payment,” the IRS said, adding that the money also “will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.”

There are also rules on the stimulus money when it comes to bankruptcy, a legal process where indebted consumers pay back their creditors. Judges will not consider the money as income when people apply for a common form of bankruptcy. And if someone’s in a bankruptcy case’s repayment plan, the stimulus check doesn’t count as “disposable income” that could be applied to things like credit card debt.

I made too much money in 2018 and 2019, so I won’t be getting any stimulus money, right?
Wrong, maybe.

Here’s where it’s important to remember the stimulus money is, technically speaking, a tax credit for the 2020 tax season.

If someone didn’t qualify for the payment now, they may still be eligible for the payment during the 2020 tax season, which happens in 2021, Stern said — so long as they make below the income limits.

The coronavirus outbreak is, regrettably, derailing the earnings for many people. More than 33 million people have filed for unemployment benefits since the pandemic shut down much of the economy and economists worry a recovery will be slow going.

So if a person doesn’t qualify for a stimulus payment money now, they might, come next tax season. Everyone else who’s already received their stimulus check won’t get a second check, Stern said.

Here’s another scenario to keep in mind.

Say someone made below the $75,000/$150,000 income threshold in their 2018 return but their 2019 earnings turned out to be exceed that amount.

If they receive the stimulus money and submit their 2019 tax return afterwards, the IRS won’t turn around and ask for the money back, according to Rob Seltzer, a Los Angeles–based financial planner who’s the president and founder of Seltzer Business Management.

“They are not going to claw it back,” he said.

We will see, haven’t got all my forms yet. The ones I think are in for a big shock are those who got 600 bucks a week on top of their normal UI payments. Last I knew Unemployment payments are taxable income.

this is from the TurboTax support page:


If you received a stimulus payment, you do not have to pay taxes on it or pay it back. If you don’t receive the correct amount of stimulus payment, you can claim the Recovery Rebate Credit when you file your 2020 taxes and it will provide the same amount of payment as the stimulus would have. TurboTax will guide you through this to make sure you get every dollar you deserve.

Didn’t get no damn stimulation

Rock Chuck,

I was incorrect with the $2000.....it was really $1200.00

all I can say is, my wife inadvertently/mistakingly put in $1200 as our stimulus money. After all computations, we were to get xyz refund. Later, she realized that our stimulus was $2400. When she went back, changed the $1200 to $2400.....our refund was now the original xyz-$1200!

So, when the $1200.00 was added to our total income......they took it right back in the form of additional taxes! memtb

That money should be taxable, as it is backed by taxpayers. People need to understand free money is not really free.