Stimulus Payment

Stuart O. Bronstein

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May 10, 2021, 12:59:52 PM5/10/21

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OP received a stimulus payment in 2019. They made enough more money in
2020 that they wouldn't qualify if there is another stimulus payment.
He's asked if (in case there might be another payment) he should file
an extension for 2020 in hope that they will use his 2019 income to
determine the amount of a stimulus payment he might received.

Any thoughts? I haven't looked into this so don't know how it works.

Thanks.

--
Stu
http://DownToEarthLawyer.com

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Alan

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May 10, 2021, 4:15:06 PM5/10/21

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On 5/10/21 9:59 AM, Stuart O. Bronstein wrote:
> OP received a stimulus payment in 2019. They made enough more money in
> 2020 that they wouldn't qualify if there is another stimulus payment.
> He's asked if (in case there might be another payment) he should file
> an extension for 2020 in hope that they will use his 2019 income to
> determine the amount of a stimulus payment he might received.
>
> Any thoughts? I haven't looked into this so don't know how it works.
>
> Thanks.
>

EIP #3 ($1400 max) is an advance payment for the refundable 2021
Recovery Rebate Credit. If the IRS has your 2020 tax return, the
payment will be based on that return. If they do not have the 2020 tax
return, they will use the 2019 tax return. You can do the math.

Stuart O. Bronstein

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May 10, 2021, 6:40:13 PM5/10/21

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Alan <temp...@vacationmail.com> wrote in
news:s7c47g$7b3$1...@dont-email.me:

> On 5/10/21 9:59 AM, Stuart O. Bronstein wrote:
>> OP received a stimulus payment in 2019. They made enough more
>> money in 2020 that they wouldn't qualify if there is another
>> stimulus payment. He's asked if (in case there might be another
>> payment) he should file an extension for 2020 in hope that they
>> will use his 2019 income to determine the amount of a stimulus
>> payment he might received.
>>
>> Any thoughts? I haven't looked into this so don't know how it
>> works.
>>
>> Thanks.
>>
> EIP #3 ($1400 max) is an advance payment for the refundable 2021
> Recovery Rebate Credit. If the IRS has your 2020 tax return, the
> payment will be based on that return. If they do not have the
> 2020 tax return, they will use the 2019 tax return. You can do
> the math.

Thanks Alan.

--
Stu
http://DownToEarthLawyer.com

Stan Brown

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May 10, 2021, 11:35:31 PM5/10/21

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On Mon, 10 May 2021 12:59:10 EDT, Stuart O. Bronstein wrote:
>
> OP received a stimulus payment in 2019.

_For_ 2019, paid in 2020, I think you mean. Hard to believe now, but
just two short years ago, none of us had heard of COVID.

> They made enough more money in
> 2020 that they wouldn't qualify if there is another stimulus payment.
> He's asked if (in case there might be another payment) he should file
> an extension for 2020 in hope that they will use his 2019 income to
> determine the amount of a stimulus payment he might received.
>
> Any thoughts? I haven't looked into this so don't know how it works.

Does the client have their bank account information on file with the
IRS? C'est-a-dire, did they get their payment in 2020 by direct
deposit, not by paper check? If so, I think they'd already have
received the latest stimulus if they were going to get it.

If their bank account information isn't on the IRS files, then Alan's
advice sounds sensible to me. (File for an extension, then don't file
2020 taxes till after receiving a paper check.)

--
Stan Brown, Tehachapi, California, USA https://BrownMath.com/
https://OakRoadSystems.com/
Shikata ga nai...