Stimulus check

Technical topics regarding tax preparation.
#21
JR1  
Posts:
6043
Joined:
21-Apr-2014 9:31am
Location:
Western 'burbs of Chicago
So I'm reading a couple things that are different. One is that no one will have to repay this, it will be reported to determine whether you should have gotten more. And then, it's said that this is like the 2008 rebate....but I seem to recall that that DID reconcile on tax payments and reduced refunds....
Go Blackhawks! Go Pack Go!
Remembering our son, Ben Jan 22, 1992 to Aug 26, 2011.
For FB'ers: https://www.facebook.com/groups/BenRoberts/
 

#22
Posts:
679
Joined:
30-May-2014 1:43pm
Location:
MA
JR1

Maybe you are recalling a situation like Cathy mentioned in post #14.

You could have a situation in 2020 where some client (let's assume married couple) tells you that they never got the $2,400 stimulus check (but in reality they did). You fill out the 2020 return and calculate it like they should be getting the $2,400 in 2020 so instead of a $3,000 refund they get a $5,400 refund.

When the IRS processes the return, they say no no no, that couple had the $2,400 deposited into their account in April of 2020. So they reduce the refund back to $3k, That is different if the couples income shoots up to $600k in 2020 from $140k in 2019. In that case, they would be over the limit in 2020 but will not have to pay back the $2,400 they got based on 2019.

How many people last year with direct deposit of their paycheck did you ask if they saw a bump in their pay when the withholding went down. Most said they had no clue. There will be people who do not even realize they got the stimulus check direct deposited.
 

Previous

Return to Taxation



Who is online

Users browsing this forum: Google [Bot], wale89 and 99 guests

cron