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Stimulus checks


faraha

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I have a client with $185,000 income in 2019. They should have received a part of the stimulus checks in mid 2020 and Jan 2021 since it phases out from $150K -$198K. They were below the $198K so they should have received a small amount.  

In 2020 their income is over $240,000.  Since thier income in 2020 is much higher they cant claim the stimulus payments based on 2020 income but how do we claim the 2019 partial stimulus payment that they should have received but never got from the irs.?

what should they do?

 

thanks

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The second stimulus died at $175K, which was twice as fast as the first stimulus. 

Short answer to your question... TOO BAD.

The stimulus was an advance for 2020 tax return. In your clients' case, they made too much so there is nothing they can do to claim the crystal ball stimulus they "lost".  Maybe in 2018 the made more than 198K and the filed 2019 after the checks were cut.

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Your client is out of luck and won't receive any more stimulus funds.  The payments were actually an advance on the Recovery Rebate Credit claimed on the 2020 return, not 2019.  Because the 2020 returns weren't in the IRS system at the time of issuance and the agency had only either 2018 or 2019 returns to base the payments on, some people got more than they should have compared to if the 2020 tax return income had been available at the time payments were issued, and in those cases there is no payback.  When you work through the credit calculation, if the person's combined total for both stimulus checks is less than the credit calculated, then that person gets the remaining amount as a refundable credit on the 2020 return that either reduces the amount owed or increases the return. 

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This whole thing seems crazy.  I have clients coming in, made $200k, got a PPP loan for $50k, say what?  Another basically retired, had a small W2 amount, got $26k in unemployment, another whose husband makes $250k, she had a pt job the past several years with a W2 of $2k, got $15k in unemployment.  Whew.  A painter client, just him, didn't get anything, said the trades had a banner year in 2020 and still got ppp money, it was a windfall.  Sheesh.  Maybe this is off topic, but whoa nelly.

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One of MANY.... a stay at home mom worked for 2 weeks in a church nursery. 

W2 was about $250. 

Covid struck. 

She got over FIFTEEN THOUSAND DOLLARS in unemployment. 

She's a stay at home mom.... 

I'm working my butt off and got chump-change. 

wine... wine... wine...

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