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I wasn’t sure where to post this, but I know there are a lot of smart people here, and was curious as to how this will work if anyone has some thoughts. I’m looking at the newest proposal for the stimulus package and something like this will create problems for divorced couples and tax returns. For my own situation, my income has to be over a certain amount to claim the children, in 2018, I didn’t meet that criteria as I was just re-entering the workforce midway through the year. For 2019 I did and I’ve filed my taxes. I’m reading this as they’re going to base this stimulus on 2018 data. This doesn’t seem logical at all... I hope that’s a typo. Or can someone help me explain how that would make sense, given we just wrapped up 2019, not 2018.

“based on a 2018 tax return”

https://apple.news/AsGeUIeAwSNmqinX4ckesQw





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Yes there are problems with this. I've been wondering about this as well.

Another issue is low income people on Social Security. They don't file taxes.

I guess it's the same for the poor who don't file taxes.
 

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It's logical. 2019 taxes aren't due yet, aren't processed yet. They can't use them.

But there are those who have filed (and processed) taxes for 2019.. so it seems they would go by the most recent that they do have. Also people’s income changes year over year in some cases, so it seems they would base it on the most recent standard of living, not 2 years ago. Ugh


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Yes there are problems with this. I've been wondering about this as well.



Another issue is low income people on Social Security. They don't file taxes.



I guess it's the same for the poor who don't file taxes.


That’s covered..


“Qualifying income includes earned income, as well as Social Security retirement benefits and certain compensation and pension benefits paid to veterans.”


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That’s covered..


“Qualifying income includes earned income, as well as Social Security retirement benefits and certain compensation and pension benefits paid to veterans.”
I read somewhere that there have been bailouts like this in the past a few times. The gov has always looked at the IRS records to determine who was paid. So only those who received SS and paid taxes were include. I hope they are not doing this. One those on SS who have income other then their SS are required to file taxes.
 

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Yes there are problems with this. I've been wondering about this as well.

Another issue is low income people on Social Security. They don't file taxes.

I guess it's the same for the poor who don't file taxes.
Then again, how will their situation change if they are poor and on Social Security and maybe a fixed pension?

Those checks will continue.

If they are poor, it means they likely have no diminishing investment income, viz., 401K's, etc..
 

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And looking at the text of the actual proposal, this looks more like some form of rebate. I don’t know and it mentions tax year 2020.. so whoever translated this for the news article seems to have misread it I guess :)


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And looking at the text of the actual proposal, this looks more like some form of rebate. I don’t know and it mentions tax year 2020.. so whoever translated this for the news article seems to have misread it I guess :)
Could you post a link to the actual proposal?
 

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Then again, how will their situation change if they are poor and on Social Security and maybe a fixed pension?

Those checks will continue.

If they are poor, it means they likely have no diminishing investment income, viz., 401K's, etc..
The bailout to individuals is not some kind of payment to cover lost investment income. The purpose is supposed to be to help people pay bills. At least I thought that was what it is.

I found the following... will take about it in another post.

Individuals making $75,000 based on a 2018 tax return would be eligible for $1,200 payments, or $2,400 for couples filing jointly.

The payments would decrease for those making more than $75,000, with an income cap of $99,000 per individual or $198,000 for couples. The payments would also increase $500 for each child a person or couple has.

However, taxpayers with little or no income tax liability but at least $2,500 of qualifying income would be eligible for only $600 or $1,200 for couples.

The legislation would provide checks of $1,200 per adult for many families, as well as $500 for every child in those families. Families filing jointly would receive up to $2,400 for the adults. The size of the checks would diminish for those earning more than $75,000 and phase out completely for those earning more than $99,000. The poorest families, those with no federal income tax liability, would see smaller benefits, though the minimum would be set at $600.
Taxpayers with little or no income tax liability, but at least $2,500 of qualifying income, would be eligible for a minimum rebate check of $600 ($1,200 married). Qualifying income includes earned income, as well as Social Security retirement benefits and certain compensation and pension benefits paid to veterans. https://www.nationalreview.com/corner/coronavirus-relief-dont-send-poor-people-smaller-checks/

I don’t know if the following is true, but if it is, I have a problem with it.

An early analysis showed the vast majority of middle class people would receive the cash payment, but the percentage doing so falls dramatically toward the bottom of the income distribution. About 22 million people earning under $40,000 a year would see no benefit.
https://www.washingtonpost.com/business/2020/03/19/trump-coronavirus-economic-plan-stimulus/


Taxpayers with little or no income tax liability, but at least $2,500 of qualifying income, would be eligible for a minimum rebate check of $600 ($1,200 married). Qualifying income includes earned income, as well as Social Security retirement benefits and certain compensation and pension benefits paid to veterans.​
 

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So it seems that the bail out is meant to help people who earn between $41,000 and $99,000.

Those who earn $40,000 or less are not getting much of anything, if anything at all.

Something seems very off with this. A huge percentage of those losing their jobs are in the lower income range.
 

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What about the people that got married in 2009? Like a guy makes 100k a year, married a woman that makes 20k a year. So is only one going to receive a check or do they both since married their income is lower than 150k?
 

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Then again, how will their situation change if they are poor and on Social Security and maybe a fixed pension?

Those checks will continue.

If they are poor, it means they likely have no diminishing investment income, viz., 401K's, etc..
My understanding is that the bail out is not to reimburse people for diminished investment income. The point is, I thought, to help people whose income is affected by the income loss.

A lot of people who will get the bail out will also have their pay check coming. So your argument that Social Security recipients will still have their checks coming does not hold water.

Plus, costs will most likely go up for those on Social Security whether it's retirement or disability. For example, a friend of mine is running out of some of the supplies he needs for his disability. These items are sold out every place we checked. He ended up having to order them online on amazon and they are now double what they were before the pandemic ascended from hell.
 

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What about the people that got married in 2009? Like a guy makes 100k a year, married a woman that makes 20k a year. So is only one going to receive a check or do they both since married their income is lower than 150k?

That's a good question. From what I found, if they were not married, he would get some $$ and she would get nothing or very little.

However, since they are married, their joint income is $120,000. So they will each get $1,200.

I think we need more details.
 

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What about the people that got married in 2009? Like a guy makes 100k a year, married a woman that makes 20k a year. So is only one going to receive a check or do they both since married their income is lower than 150k?

That's a good question. From what I found, if they were not married, he would get some $$ and she would get nothing or very little.

However, since they are married, their joint income is $120,000. So they will each get $1,200.

I think we need more details.
But according to their 2008 tax forms they were single so are they being treated as married?
 

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I wasn’t sure where to post this, but I know there are a lot of smart people here, and was curious as to how this will work if anyone has some thoughts. I’m looking at the newest proposal for the stimulus package and something like this will create problems for divorced couples and tax returns. For my own situation, my income has to be over a certain amount to claim the children, in 2018, I didn’t meet that criteria as I was just re-entering the workforce midway through the year. For 2019 I did and I’ve filed my taxes. I’m reading this as they’re going to base this stimulus on 2018 data. This doesn’t seem logical at all... I hope that’s a typo. Or can someone help me explain how that would make sense, given we just wrapped up 2019, not 2018.
Per the link you provided, they can use your 2019 taxes as the basis.

Page 19, line 24

(5) Alternate Taxable Year. – In the case of an individual who, at the time of any determination made pursuant to paragraph (3), has not filed a tax return for the year described in paragraph (1), the Secretary may apply such paragraph by substituting ‘2019’ for ‘2018’.
 
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