Jump to content
ATX Community

Rebates


Christian

Recommended Posts

The 2020 returns will have a credit for the appropriate amount based on 2020 taxpayer(s) and dependent(s). There'll be a subtraction of the amount of the advance check, but not below zero. Any positive result will be a refundable credit on the 2020 return.

  • Like 2
Link to comment
Share on other sites

  • 3 weeks later...

I'm told it will be similar to the ACA credit/tax.  Too much ACA benefit results in a tax, too little ACA benefit results in a refundable credit.

The amount of stimulus being forwarded now is calculated based on 2019 tax return (or 2018 tax return if 2019 is unavailable).  As part of the processing of the 2020 tax return next year, the income criteria on the 2020 tax return (no other year) will be measured and compared to the stimulus payment.  If stimulus was overpaid, the difference becomes a separate tax under "Other taxes."  If stimulus was underpaid, the difference becomes a refundable credit.

It is expected that the overwhelming majority of taxpayers will have neither a tax or a credit.

  • Like 1
Link to comment
Share on other sites

Thanks for the correction Judy.  I was misinformed by a radio tax program where people called in to have their questions answered.

If I understand you correctly, the measurement of stimulus versus eligibility goes in only one direction.  If people are overpaid then they don't have to pay it back.  But if they are shortchanged, they will be entitled to a refundable credit on their 2020 return.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Restore formatting

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...