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https://www.nytimes.com/article/coronavirus-stimulus-package...
This was one of the better summaries regarding the stimulus checks that I found.
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Here's the catch. If you earned between $75k and $99k in 2019 (or 2018) and ultimately end up earning at least $75k in 2020, you will owe back the difference, up to the full $1200

I just read an article that you will NOT owe back the credit if you receive a check now, but your 2020 income taxes show you that you wouldn't have been eligible.

https://www.forbes.com/sites/anthonynitti/2020/03/26/when-yo...


But I have no idea if that article is right or the own you read.
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Skimmed the Act - so take it for what it is worth. Other than #1, here are some items that are of interest. Note, IF YOU PLAN TO AMEND PRIOR RETURNS OR TAKE ACTIONS - DO NOT RELY ON THIS QUICK SUMMARY. It is intended to alert you to things to look for more guidance on in the near future or think about if you plan on filing in the next few weeks. I'm sure more guidance will come out soon. Contact an accountant if it would be beneficial to amend 2019 or file without claiming dependents as noted in #2. Retirement Plan Providers will adopt rules related to #4 & #5.

1. Much of what is out there is accurate, and there is no provision for the IRS to get a payment back (except for fraud or reckless neglect).

2. One provision that may disappoint people is people (i.e., an adult college student) who were claimed as a dependent are not eligible for a $1,200 payment. So, qualifying children under 18 (parent can get $500 credit), AND dependents including adult children, even a disabled adult child, a parent, or other dependent. That may surprise people. I wonder if you can amend 2019 (or 2018 if you haven't filed) and not claim the dependent to try and get the $1,200. If you haven't filed 2019, you may want to file and not claim the person (assuming the $1,200 is more than the dependent exemption).I haven't seen anything on this - perhaps others can comment. If you already filed and don't plan on amending then I guess you'll see what you get.

3. New $300 above the line charitable deduction - looks like permanent effective 1/1/2020. Note, some contributions don't qualify such as Type III Supporting organization or donor advised fund.

4. Retirement/IRA Rules - more will come out but basically, you can take out $100,000 (without penalty) from certain retirement plans if you tested positive or can show other hardship related to coronavirus. You can also pay it back within 3 years.

5. Qualified Plans. Loan Limit can be up to $100,000 instead of $50,000. It doesn't look like you have same coronavirus related requirements as distributions under #4. Repayments can be delayed 1 year. I believe an employer would need to adopt this rule and amend its plan.

6. Student loan interest. Federal Student Loan payments are deferred until after September 30, 2020 (6 months). No interest accrues. You are treated as having made 6 months of payments for purposes of credit and forgiveness programs.
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Thanks for the update. I didn't even see that the bill text was available online to read.

Fuskie
Who knows a couple people who will be upset with item 2; one has a 19yr old child who moved out on her own in November, 2019 but was claimed a dependent on their parents' 2019 taxes...

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The $500 stimulus payment per child is for dependents under age 18. If a child is 18yrs or older, they are eligible for a full $1200 payment, even if they are claimed as a dependent on their a parent's taxes.

Thanks Peter. Our college kid will be thrilled to get a check in the mail. It's been tough to work and while we assured him we had his back, that's not his style. We thought for sure he would not be eligible.

Though classes are now on-line, his lease is still in effect on his apartment.

IP
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Our college kid will be thrilled to get a check in the mail.
...
2. One provision that may disappoint people is people (i.e., an adult college student) who were claimed as a dependent are not eligible for a $1,200 payment. So, qualifying children under 18 (parent can get $500 credit), AND dependents including adult children, even a disabled adult child, a parent, or other dependent. That may surprise people. I wonder if you can amend 2019 (or 2018 if you haven't filed) and not claim the dependent to try and get the $1,200. If you haven't filed 2019, you may want to file and not claim the person (assuming the $1,200 is more than the dependent exemption).I haven't seen anything on this - perhaps others can comment. If you already filed and don't plan on amending then I guess you'll see what you get.


Well that was fleeting.

It was reported on IIRC Retirement Investing that RMDs would not be obligatory this year. Any truth to that? If so does that include Inherited IRAs?

IP
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It was reported on IIRC Retirement Investing that RMDs would not be obligatory this year. Any truth to that?

I've seen this mentioned lots of places so suspect it's true.

If so does that include Inherited IRAs?

The only place I've seen inherited IRAs mentioned specifically is:

https://www.kiplinger.com/article/retirement/T045-C000-S004-...

Which says:

"Distributions from inherited IRAs are not included in the waiver and will still need to be taken in 2020."

(Emphasis theirs). So... boo. :-(

Brian
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If so does that include Inherited IRAs?

The only place I've seen inherited IRAs mentioned specifically is:

https://www.kiplinger.com/article/retirement/T045-C000-S004-......

Which says:

"Distributions from inherited IRAs are not included in the waiver and will still need to be taken in 2020."

(Emphasis theirs). So... boo. :-(


On the other hand,

https://www.forbes.com/sites/ashleaebeling/2020/03/27/congre...

says:

"Children, grandchildren and others who have inherited IRAs (pretax IRAs and Roth IRAs) must take annual withdrawals regardless of their own age. They too get an RMD holiday for 2020."

So while an RMD holiday for at least some types of IRAs seems to be the case, whether that includes inherited IRAs or not seems up in the air for the moment.

Brian
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I guess it should be comforting to know I am not the only one who is confused.

IP,
for whom the RMD is not large, anyway
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So, the problem is that section 2201(d) of the Act defines who is not eligible for the $1,200 credit:
(1) Non-resident aliens (NRAs) (note you also need a SSN later in the act, so TAX IDs for certain undocumented "residents" likely not be good enough),
(2) A person claimed as a dependent under IRC 151, and
(3) A trust or estate.

A child or other relative who is claimed as a dependent on someone else's return is not permitted a credit. (Dependent is defined in IRC 152 as a qualifying child (QC) or qualifying relative (QR)).

So, if you claimed a QC or QR as a dependent on a 2019 return - the dependent will not get an "advanced" rebate payment. If not claimed, then they should. If you didn't file for 2019 yet, the IRS will look at 2018 to see if they were claimed as a dependent. Presumably, if claimed there they will not get an advanced credit.

However, if the individual is not claimed in 2020, then presumably the individual will be able to claim the credit when they file their 2020 tax return. While "advanced payments" stop 12/31/2020, presumably the credit for your 2020 tax return doesn't.

So, you should get a chance in 2020 to determine if you should claim the adult QC or QR dependent in 2020. So, if the college kid (or other adult relative) is no longer claimed in 2020, they should qualify for their credit in 2021 on their 2020 tax return.

Mike
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I guess it should be comforting to know I am not the only one who is confused.

You're definitely not. I actually found a Forbes article that says one thing on the subject in one paragraph then the exact opposite in the next, so even the "big boys" are confused.

for whom the RMD is not large, anyway

Mine isn't either, but I don't need it, so if I can avoid taking it (and paying taxes on it), I'd like to (or at least like to have the option). I normally don't take the RMD until later in the year though, so I imagine things will be clear by then.

Brian
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https://www.nytimes.com/article/coronavirus-stimulus-package...
This was one of the better summaries regarding the stimulus checks that I found.
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If I'm getting a stimulus money I'll give $400 to St Marys Food Bank to help my Arizona tax bill!
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Wrote check to St Marys Food Bank and paid $400 today and mailed it.

mtr wished the Fraud Department from Charles Schwab would have blocked the transaction and had money in the account to do so. The same with Sunwest Fraud department.
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