Stimulus Checks - How They Will Be Calculated

[cany10011]

What would $1200 “stimulate?. It‘s not even living expenses for those who truly need it, especially if we have to lockdown until end of May the earliest.

[jjkrkwood]

Well, I'll just look on the bright side. It's always fun to put on a fashion show with my dearest and most darlingest friend.

 

 

OMG, I really put on too much BRONZER ! :eek:

[+ Charlie]

I actually filed and paid our 2019 taxes by check on March 13 (silly me!), so I assume we will be getting a direct deposit into the account on which the check was drawn. Right?

[wklukas]

I actually filed and paid our 2019 taxes by check on March 13 (silly me!), so I assume we will be getting a direct deposit into the account on which the check was drawn. Right?

 

 

I think expecting the IRS to lift your bank info from a physical check sent in with a tax return is an erroneous expectation....In your case, if you already receive Social Security via direct deposit, then the IRS will have access to the needed info....

There is some chatter that coming soon - the IRS will have a website (& / or) an app up & running where one can transmit bank info to them if your bank info for direct deposit is not with any of the various governmental agencies yet.

[+ Charlie]

I think expecting the IRS to lift your bank info from a physical check sent in with a tax return is an erroneous expectation....In your case, if you already receive Social Security via direct deposit, then the IRS will have access to the needed info....

There is some chatter that coming soon - the IRS will have a website (& / or) an app up & running where one can transmit bank info to them if your bank info for direct deposit is not with any of the various governmental agencies yet.

Thanks for the info. Last year we did get a direct deposit return from the IRS to our joint account. We both get direct deposit S.S., but they are to our individual checking accounts, not our joint account. We each qualify individually for the checks, as well as a married couple filing jointly, and the total amount seems to be the same either way, so I assume that somehow or other it will all work out.

[arlinguy]

I do have a few questions.

 

I haven't filed 2019 taxes yet. If I do that this week, is it likely or even possible I'm captured in this first round of people who filed in 2019?

 

I do my own taxes and I've always found it easier to just do them on paper, and mail them. I'm not particularly worried about when I get a check. But I've been toying with the idea of doing them online this week, for the first time in my life. Is there any reason to think that makes any difference? Is there a cut off date, like if you file your taxes by April 10 and include bank info you get captured in this first wave?

 

The other reason I usually wait until April is I almost always owe money. So if I have never given them bank information before, and I actually owe the IRS money (which is now due July 15) can I still file and give them bank info for purposes of sending me a stimulus payment?

 

Thanks.

The sooner you can file online the better. IRS is giving us the file on April 9, which will only include those tax filers who provided bank account information. There are several free options that allow you to submit electronically. If you owe, the IRS lets you file your taxes now and pay later. That means you can file your taxes and provide your bank account information to let them withdraw the money. However, you can specify that you do not want them to withdraw the money until July 15th, which is the new tax filing deadline.

[arlinguy]

I'd be VERY surprised if ANYONE actually sees a check come from this stimulus package. I deem the whole stunt FAKE NEWS to stimulate the market. That's how cynical i have become. Sorry @stevenkesslar , you and I will just have to start selling off our glitter frocks and cubic zirconias for xtra Dollas !

In this case, it is not fake news. We expect to issue over 50 million stimulus payments (hopefully more) by April 10. It all depends on how many people provided bank account information when they files their taxes.

[arlinguy]

I think expecting the IRS to lift your bank info from a physical check sent in with a tax return is an erroneous expectation....In your case, if you already receive Social Security via direct deposit, then the IRS will have access to the needed info....

There is some chatter that coming soon - the IRS will have a website (& / or) an app up & running where one can transmit bank info to them if your bank info for direct deposit is not with any of the various governmental agencies yet.

Hate to burst your bubble, but if you filed your taxes and paid with a physical check you will get your stimulus payment later. The IRS is expecting to release a web portal by April 17th (wheresmystimuluscheck.gov) that you can input bank account information, which will give you your payment faster. While we will be issuing checks, it could take us up to 3 months to issue them all (depending on volume). Banks do not want Treasury to issue very many checks because so many branch locations have closed and most do not accept mobile deposit of Treasury checks due to fraud concerns.

 

As an additional piece of information, IRS does not have access to Social Security payment information. The law gives us the ability to redirect stimulus payments to bank accounts if we have that for Social Security or Veterans benefit payments, but the details still have to be worked out. It's in the hands of the lawyers.

[+ stevenkesslar]

In this case, it is not fake news. We expect to issue over 50 million stimulus payments (hopefully more) by April 10. It all depends on how many people provided bank account information when they files their taxes.

 

Since you know about this, I'm curious. Some people who filed in 2018 and gave bank data for refunds (or payments) will have out of date bank info: they moved, they switched banks, etc.

 

How does that play out? Does the money just bounce back if the account is closed, and then those people go into the second queue?

 

Anyhoo, sounds like there is a lot of thought and action going into this. Good luck.

[arlinguy]

Since you know about this, I'm curious. Some people who filed in 2018 and gave bank data for refunds (or payments) will have out of date bank info: they moved, they switched banks, etc.

 

How does that play out? Does the money just bounce back if the account is closed, and then those people go into the second queue?

This is a real problem, which is why we want as many people to file 2019 taxes as soon as possible. However, if someone filed taxes in 2018 with bank account information but they have not filed them yet in 2019, the IRS is including them in the first wave of payments. You correctly point out that some people switched banks between 2018 and 2019. In those instances, the money will be returned to Treasury and those people will go in the second wave (either checks or debit cards to the mailing address or hopefully corrected through the portal).

[+ stevenkesslar]

This is a real problem, which is why we want as many people to file 2019 taxes as soon as possible. However, if someone filed taxes in 2018 with bank account information but they have not filed them yet in 2019, the IRS is including them in the first wave of payments. You correctly point out that some people switched banks between 2018 and 2019. In those instances, the money will be returned to Treasury and those people will go in the second wave (either checks or debit cards to the mailing address or hopefully corrected through the portal).

 

Makes sense. At least you tried. Again, good luck and thanks for your service.

[MrMattBig]

This is a real problem, which is why we want as many people to file 2019 taxes as soon as possible. However, if someone filed taxes in 2018 with bank account information but they have not filed them yet in 2019, the IRS is including them in the first wave of payments. You correctly point out that some people switched banks between 2018 and 2019. In those instances, the money will be returned to Treasury and those people will go in the second wave (either checks or debit cards to the mailing address or hopefully corrected through the portal).

Thanks for all the great info.

I am one who has switched bank accounts from 2018 filings. Any thoughts on the effectiveness of say filing 2019 in the next few days and the correct bank info being caught into the first wave?

[arlinguy]

Thanks for all the great info.

I am one who has switched bank accounts from 2018 filings. Any thoughts on the effectiveness of say filing 2019 in the next few days and the correct bank info being caught into the first wave?

Absolutey! If you are able to file in the next few days with the new bank account information that will override the account you used in 2018. Otherwise, since you provided bank account info which is now out-of-date, we will try to deposit the funds in that account. It will be returned to us and your stimulus payment will be delayed. If you file this week with the new bank account information you will get your stimulus payment in your current bank account within a few day of April 10.

[alexslaveboy]

@arlinguy

So question, in late 2017 I quit my job to become a caregiver to my elderly father

I did not work at all in 2018 and just took care of him full time and and I just went back to work in November of 2019

No 2018 or 2019 filings

 

So I haven't filed income tax since 2017

Any thoughts how I can get a stimulus check.....

[arlinguy]

@arlinguy

So question, in late 2017 I quit my job to become a caregiver to my elderly father

I did not work at all in 2018 and just took care of him full time and and I just went back to work in November of 2019

No 2018 or 2019 filings

 

So I haven't filed income tax since 2017

Any thoughts how I can get a stimulus check.....

We have thought about your scenario too. I was on a call with the IRS today and they said they are planning to use a form similar to something they used in 2008 for stimulus payments for non-tax filers. What this means is since you were not required to file taxes you will have to file a simple form that will qualify you for the stimulus payment. I'm not sure if it will be available through the stimulus portal or if it will be available through IRS.gov. I'll write back once I know for sure.

[RealAvalon]

This may be a naïve question. This $1,200 per month - how many months does that go on for? In Canada the federal income supplement proposal (not including any additional provincial supplements) is up to $2,000, for four months. But I don't know how that compares with the USA.

Edited March 31, 2020 by RealAvalon

[+ azdr0710]

This may be a naïve question. This $1,200 per month - how many months does that go on for? In Canada the federal income supplement proposal (not including the provincial supplements) is up to $2,000, for four months. But I don't know how that compares with the USA.

 

it's a one-time payment

[wklukas]

Hate to burst your bubble, but if you filed your taxes and paid with a physical check you will get your stimulus payment later. The IRS is expecting to release a web portal by April 17th (wheresmystimuluscheck.gov) that you can input bank account information, which will give you your payment faster. While we will be issuing checks, it could take us up to 3 months to issue them all (depending on volume). Banks do not want Treasury to issue very many checks because so many branch locations have closed and most do not accept mobile deposit of Treasury checks due to fraud concerns.

 

As an additional piece of information, IRS does not have access to Social Security payment information. The law gives us the ability to redirect stimulus payments to bank accounts if we have that for Social Security or Veterans benefit payments, but the details still have to be worked out. It's in the hands of the lawyers.

 

 

If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you will be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government will send you a direct deposit or check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You will not have to file a 2019 tax return to get a stimulus check.

 

https://www.aarp.org/politics-society/advocacy/info-2020/coronavirus-stimulus-checks.html

[+ stevenkesslar]

This may be a naïve question. This $1,200 per month - how many months does that go on for? In Canada the federal income supplement proposal (not including the provincial supplements) is up to $2,000, for four months. But I don't know how that compares with the USA.

 

it's a one-time payment

 

 

Although separate from the one-time "stimulus" is unemployment compensation, which is a federal program that goes through states, anyway. Each state sets its own benefits.

 

In California the weekly max unemployment payment is $450 for up to 26 weeks. Then on top of that there is this additional federal bonus of up to $600 per week, which is specific to the pandemic and lasts for up to four months. So if I am doing the math right, that would be up to $1050 per week - maximum - in California. Does that sound correct to anyone familiar with it? That's not a guarantee, and I have no idea how states make income calculations other than I think it's based on your past income. But I think in California it could mean you get up to $4000 or so a month.

 

Then with the $1200 "stimulus", that is per adult, and also $500 per kid. So in the case of one of my tenants - two parents and three kids - that's $3900.

 

I think the intent was to use the existing government structures, like the IRS and state unemployment offices, to get money out as quickly as possible. And to replace something like 100 % of income during this crisis.

 

Arguably, the one time cash payments can be thought of as "stimulus", even though there's not a lot to stimulate while you are stuck at home. And the unemployment compensation is work income replacement, in theory. Normally unemployment is a percentage of your normal income. I think the idea under normal circumstances is to give people just enough to get by, so they are incented to go find a job ASAP. I assume the idea of that extra $600 a week is that now is not the time to go seeking work. It's supposed to replace the income you can't earn due to extraordinary circumstances.

 

At least based on what I hear from my tenants, which are working class to middle class, it seems like this patchwork will pretty much do the job it's intended to do.

 

Some may see some falling through the cracks, like if they didn't file taxes and they don't have income documentation for gig work. My escort buddy/tenant will likely be able to use his 2018 tax filing to document past income, I'm guessing. I'm not butting into my tenants' business, but in some cases I'm pretty sure their income will go up temporarily - particularly because of that $600 a week unemployment bonus. And then I have a few Section 8 tenants (government rent assistance) that will get dinged because they may count some of this money as additional income and correspondingly reduce the rent subsidy. But even if they give $1200 and take away $100 a month in rent subsidy, it's still more money.

 

All that said, it's a minor miracle, I think. I'm one of those people that believe government basically works, even under a POTUS I don't much care for. So if the idea is to spend trillions to prevent a lot of unnecessary death and pain in a pandemic, and keep families intact while we figure out how to tame this virus, it looks like we are actually figuring that out. To me this is a better idea than past decisions to spend trillions fighting endless and unwinnable wars.

 

Here's a few interesting articles about the details of how this will work differently for people in different situations. Both how some people will see their income go up a little, and others will fall through the cracks for various reasons:

 

Unemployed workers could get more than 100% of their paycheck under the coronavirus bill

 

These workers won’t qualify for beefed-up unemployment in the coronavirus relief package

 

I am hoping this is also a back door way to help Mom and Pop small businesses. In theory, I think a worker could be laid off and then qualify for unemployment. If they were lower income and doing a retail job - like as a clerk in some small retail shop - they could actually end up making more than they did working full time, probably. And then, assuming it is safe in the Summer, the store could open back up and the workers are whole. I think. That doesn't solve the shop owner's problems, like how they pay the rent for the store. P{resumably that's where the Small Business Adminsitration can help.

 

I think it's a given that this will push some small businesses that were marginal anyway over the cliff. But if we can get the virus flushed out, or more realistically contained - big IF - I think there is a good chance that most of the plumbing will still be intact in three or four months. That's at least the theory of how this could be a V-shaped recovery. It all comes down to whether we beat the virus, or it beats us.

Edited March 31, 2020 by stevenkesslar

[arlinguy]

If you are receiving Social Security benefits but didn’t file taxes in 2018 or 2019, you will be eligible to receive a stimulus check without a tax return based on data available to the IRS from your annual Social Security benefits statement. The government will send you a direct deposit or check using the information from your Form SSA-1099 Social Security Benefit Statement or your Form RRB-1099 Social Security Equivalent Benefit Statement. You will not have to file a 2019 tax return to get a stimulus check.

 

https://www.aarp.org/politics-society/advocacy/info-2020/coronavirus-stimulus-checks.html

AARP updated the article after this was posted. IRS can't verify eligibility based on info contained in the 1099 so they really want non-tax filers to submit a simple tax form. There were discussion today about basing the payment on the 1099, which is what the Ways & Means committee wants, but what about social security recipients who have dependents? How will they get the extra $500 per dependent. That is still an unanswered question.

[wklukas]

AARP updated the article after this was posted. IRS can't verify eligibility based on info contained in the 1099 so they really want non-tax filers to submit a simple tax form. There were discussion today about basing the payment on the 1099, which is what the Ways & Means committee wants, but what about social security recipients who have dependents? How will they get the extra $500 per dependent. That is still an unanswered question.

 

 

late update from evening April 01 - mnuchin has clarified / decided how Social Security folks will be handled ——

 

“Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account,” said Treasury Secretary Steven T. Mnuchin.

 

https://www.washingtonpost.com/business/2020/04/01/bailout-checks-social-security/

 

https://www.cnn.com/2020/04/01/politics/social-security-stimulus-payments/index.html

Edited April 2, 2020 by wklukas

[arlinguy]

I debated posting this because I am a frequent visitor but not a big poster. However, I posted a lot in this thread and recently received a private message from a member who said, "when all is said & done, it appears you actually were quite ignorant about the way the IRS would handle things....you presented yourself as an authority & as a person not to be questioned regarding what you were saying but nearly all of your statements presented as facts have proven to be incorrect.....

ya win some / ya lose some......sometimes ya lose them all"

 

I am trying not to be defensive in this post. I just want to say that I was just trying to help by providing information in a situation that was changing daily. I feel proud that to date we have been able to distribute payments to over 120 million people. However, I offended this member which means I must have also offended others, and for that I am truly sorry.

[alexslaveboy]

I've been furloughed from my job since 3/15/20

 

As of today no unemployment benefits and no stimulus money

 

I was originally denied unemployment benefits because NJ unemployment claimed I wasn't eligible because of weeks worked at my current job

Need to have worked 20 weeks they claimed I only worked 14

 

I worked from Oct 12th 2019 to Mar 15th 2020. For a total of 22 weeks

So I appealed calling bullshit on their information

 

I didn't file income taxes for 2018 or 2019 so I tried getting a stimulus package by registering online but the site kept buffering every time I tried to complete my application

 

Guess that I won't be getting any money from NJ or the government and I am going to have to apply for welfare and SNAP to survive this month and the next!!!!!!

[RealAvalon]

In Canada, between the federal and provincial governments I should receive about $10,800 between March 15th - July 15th for lost self-employed earnings. I have received half of that amount so far.

 

The federal dollars are a taxable benefit, while the provincial dollars are not a taxable benefit. If there is an overage, it will be figured out next year when I do income taxes. And I'll happily pay my taxes because taxes are a good thing. Keeping civil society's bills being paid.

 

For people that needed it there were also discounts on hydro rates, car insurance and gas bills. Mortgage payments could be deferred, although the unpaid interest portion of the payments would be added to the outstanding mortgage amount owing. Cell companies have provided unlimited data. There's been other stuff I can't remember right now as well.

 

And thankfully there are no medical costs incurred for accessing services with the universal health insurance program.

Edited May 4, 2020 by RealAvalon

[coriolis888]

I debated posting this because I am a frequent visitor but not a big poster. However, I posted a lot in this thread and recently received a private message from a member who said, "when all is said & done, it appears you actually were quite ignorant about the way the IRS would handle things....you presented yourself as an authority & as a person not to be questioned regarding what you were saying but nearly all of your statements presented as facts have proven to be incorrect.....

ya win some / ya lose some......sometimes ya lose them all"

 

I am trying not to be defensive in this post. I just want to say that I was just trying to help by providing information in a situation that was changing daily. I feel proud that to date we have been able to distribute payments to over 120 million people. However, I offended this member which means I must have also offended others, and for that I am truly sorry.

 

 

You offended no one.

 

Bright readers know that the program rules changed repeatedly as errors in the payment system came to light to the IRS.

 

The changes were not attributable to you. You reported what was accurate at the time you posted. Then things changed.

 

The inappropriate message sent to you just goes to prove the old saying "no good deed goes unpunished."