What is the deal with the $1,200 Promised by Government?

LS1Z28 said:
I haven't read this portion of the bill, but it's my understanding that it shouldn't affect your future taxes.

https://money.com/stimulus-check-advance-tax-refund/
Will this eat into my tax refund for 2020?
No. The ‘advance’ you’ve been hearing about is in reference to a special tax credit that’ll appear on the tax return you file in 2021 for the 2020 tax year — a tax credit that wouldn’t have been there if it wasn’t for these stimulus checks.

So the Internal Revenue Service isn’t giving you some of your 2020 tax refund upfront. The stimulus check will be in addition to what you would’ve otherwise expected.

Will it count towards my taxable income for 2020?
No. This money is not considered income. It won’t be taxable and it won’t affect your income tax bracket for 2020.
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Yeah, you got everything right. You will not be taxed on the $1,200 for 2020 tax filing.
 
gwb-trading said:
If I looked at my bank account and it only had 8 million in it.... I would be wondering what the hell happened to the other 20 million. :D

or I could assume the wife went shopping again. :banghead:
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if I were him I would keep that ATM receipt and accidentally drop it from his wallet when on a date...
 
Buy1Sell2 said:
It's an advance of a special tax credit for 2020. It is NOT an advance of your tax refund. Let's move on---nothing to see here.
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Yeah . . . . . rubes won't see what they don't want to see.



Trump Treasury Department gives banks green light to seize $1,200 stimulus checks to pay off debts

President Donald Trump’s Treasury Department has given U.S. banks a green light to seize a portion or all of the one-time $1,200 coronavirus relief payments meant to help Americans cope with financial hardship and instead use the money to pay off individuals’ outstanding debts—a move consumer advocates decried as cruel and unacceptable.

“These payments are supposed to help individuals and families put food on the table during this crisis, not enrich debt collectors.”
—Maura Healey, Massachusetts Attorney General

“The Treasury Department effectively blessed this activity on a webinar with banking officials last Friday,” The American Prospect‘s David Dayen reported Tuesday.

In an audio recording from the webinar obtained exclusively by the Prospect, Ronda Kent, chief disbursing officer at the Treasury Department’s Bureau of the Fiscal Service, told bankers that “there’s nothing in the law that precludes” financial institutions from seizing a person’s payment and using it to pay off the individual’s debts.

“After a third of U.S. renters couldn’t make rent this month, the Treasury Department is pointing out opportunities for banks and debt collectors to steal Americans’ relief checks out from under them,” Jeremy Funk, spokesperson for consumer advocacy group Allied Progress, said in a statement responding to Kent’s comments.

“It’s the middle of a pandemic,” said Funk. “This money should be going toward food, rent, and medicine—it’s not the time to hand out favors to debt collection industry donors or pad some big bank’s bottom line,” said Funk. “Secretary Mnuchin needs to ensure that these $1,200 checks go straight into Americans pockets where they belong.”
 
El OchoCinco said:
So suppose you expect (for 2020) to have $50,000 in income. That means you’d owe about $4,300 in taxes. If you paid extra each month and withheld a total of $5,300, you’d get a $1,000 tax refund.

With the CARES Act, you receive an additional “credit” for $1,200 and your tax liability is lowered from $4,300 to $3,100. Now, you would expect a $2,200 refund ($5,300 paid minus the $3,100 owed). Instead of paying you $2,200 after taxes in 2021, the IRS is sending you a $1,200 check now, so your actual refund at tax time is still $1,000.

Since this is essentially an early tax refund on taxes you will pay in 2020, you don’t have to pay it back and as Senator Dianne Feinstein’s office confirmed, it is not taxed.
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So we're robbing Peter to pay Paul. Mreh, nothing new. Like how my accountant explained it to me last year, on the increased individual deduction for 2018 taxes. Whoopee!

EXCEPT!...They removed the individual exemption. So you basically got nothing in the trade-off.
 
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