[Berry mian]

So guys don't hope for big refund for 2020 !!!!!!!!!!!!!...... that's sucks tho !!!! I Rather work !!! Pay tax !! And get a good refund end of the year then !! Small
Refund !

so it's not free money at all !!!
As people were calling it free lol

The stimulus payment is actually a refundable credit against your 2020 tax liability, according to Kyle Pomerleau of the American Enterprise, and is paid out as an advanced refund. That means you don't have to wait to file your 2020 taxes to get the money.

It also doesn't reduce any refund you would otherwise receive, Watson said.

In fact, if you don't qualify for the stimulus check now based on your 2018 or 2019 tax returns, you may be able to qualify to take the tax credit next year when you file your 2020 taxes if your income meets the thresholds.

 

[DustyToad]

Who’s to say that more stimulus packages for 2020 aren’t possible?

Two trillion dollars is a F-load of $ to inject into the economy.
And they’re talking about a F-Load more stimulus after this initial package if needed.

 

[UStaxman]

You do not pay it back ... unless your 2020 AGI is above the threshold.

So, the way this works: When you file your 2020 taxes there will be a line on your F1040 where you report how much stimulus were are entitled to, next line you report how much you received ... subtract: if equal (meaning you received what you are entitled to) then you are all set (you do not pay it back). If you received more than you should have (your AGI exceeds $75/$150K) you pay back.
If you received less than you should have you will add to to your ‘taxes paid’.

Disclaimer: I am a tax accountant and have experience with the IRS.

 

[bog_e_bylgarin]

You do not pay it back ... unless your 2020 AGI is above the threshold.

So, the way this works: When you file your 2020 taxes there will be a line on your F1040 where you report how much stimulus were are entitled to, next line you report how much you received ... subtract: if equal (meaning you received what you are entitled to) then you are all set (you do not pay it back). If you received more than you should have (your AGI exceeds $75/$150K) you pay back.
If you received less than you should have you will add to to your 'taxes paid'.

Disclaimer: I am a tax accountant and have experience with the IRS.

That is the true.

 

[Bostonium]

Not surprised. Regular Unemployment Income in taxable.

 

[FreDi Huguenin]

They said the stimulus package money is non taxable, but since nothing is free we will end up having to repay some way or another.

 

[Berry mian]

They said the stimulus package money is non taxable, but since nothing is free we will end up having to repay some way or another.

That's my point ! Since I'm only self employed without w2 job and I got feelings in my gut !!! We gonna end up paying in 2020 and plus since alots of us gonna qualify for unemployment benefits !! And those are taxable ! We might gonna end up paying more tax because of less deductions in 2020 for self
Employed

 

[scamp]

That's my point ! Since I'm only self employed without w2 job and I got feelings in my gut !!! We gonna end up paying in 2020 and plus since alots of us gonna qualify for unemployment benefits !! And those are taxable ! We might gonna end up paying more tax because of less deductions in 2020 for self
Employed

I'm opting to have fed and state taxes withheld from my UI. Unless something drastically changes in the acceleration rate it's going to be months of UI.

 

[UStaxman]

Stimulus checks are not taxable...
Unemployment is ... I highly recommend Fed & State withholdings to be on ‘safe side’ ... nothing worse than having to write a check come next April

 

[bog_e_bylgarin]

I highly recommend Fed & State withholdings to be on 'safe side' ... nothing worse than having to write a check come next April

what do you mean? Explain with a few words please.

 

[Newbedforduberft]

When you sign up for unemployment you have the option of having taxes taken out of your weekly check. I agree that having taxes taken out is better than getting a nasty surprise at tax time.

 

[E30addixt]

nothing worse than having to write a check come next April

Disagree. I don't like giving free loans to the government.

 

[UStaxman]

Disagree. I don't like giving free loans to the government.

I am speaking for the vast majority who will otherwise owe money next April and not have the means to pay it .... by the amount of late payment penalties and interest collected by both Federal and State Treasury's show you are in the minority.

For the other 80%: I would recommend 10% Federal withholdings and 5% Massachusetts State withholdings.

 

[Bonmot]

I recall back in the last big recession I was on unemployment for several weeks. In that situation, given the relatively low benefit compared to my past weekly income, I had little choice but to forego the deduction option. When I started working again, I had extra withholdings taken out to cover this. I'm glad I did since you'd be amazed at how much an extended period of receiving untaxed income can balloon your tax liability at the end of the year.

For people who have a well-stocked savings account, they have the option to not have the withholdings and then just pay out of pocket at the end of the year. For many others living paycheck to paycheck, a refund of their "free loan to the government" is far preferable to coming up with a lump sum tax payment. Speaking for myself, an extra $20 per week withholding from a paycheck doesn't negatively impact me at all. Getting an extra $1000 refund at the end of the year is absolutely a positive impact. And risking having to write a check for even half that
amount would be painful for me. Some of this is more psychological than shrewd financial planning, but feeling like I got a windfall is a nice feeling to have even if I know that it's not a windfall in actuality.

 

[E30addixt]

Speaking for myself, an extra $20 per week withholding from a paycheck doesn't negatively impact me at all. Getting an extra $1000 refund at the end of the year is absolutely a positive impact.

That "feeling" of a windfall costs more then you'd think. That measely $20 per week compounded at just 5% over 10 years means you left $3400 on the table.

If you're young and do that for 40 years you left $93,000 extra on the table.

To each their own.

 

[Bonmot]

That "feeling" of a windfall costs more then you'd think. That measely $20 per week compounded at just 5% over 10 years means you left $3400 on the table.

If you're young and do that for 40 years you left $93,000 extra on the table.

To each their own.

Oh for the love of satan, what are you talking about? Will you just once stop and think? Your calculations have absolutely nothing to do with the scenario I described.

Fact: $20 per week over the course of one year means that I don't have the full $1000 sitting around for one year, let alone ten years. Seriously, where did you come up with ten years? You're not allowed to make up data. One year ≠ ten years. $20/week over one year ≠ $1000 for an entire year.

Fact: If that $20 per week wasn't parked as a credit to the IRS, it would -- at best -- be parked in my checking account, if not fittered away in the course of routine spending. My checking account doesn't pay interest so what's the difference?

Fact: Even if I decided to be a shrewd investor and put the whole grand in an interest-bearing account for a year compounded daily at 5% annually, I would end up with a whole extra $56. But where would I get 5%? In a savings account? Doubt it. Any account I could use to get 5% interest for a year would involve transaction fees at some point along the way and the interest would be taxed and besides, I wasn't talking about storing $1000 for a year. I described putting aside $1000 over the course of a year, $20 at a time.

I admitted my own "delusion" in seeing that extra refund as a windfall. Of course that's a delusion and I know it. But my delusion pales dramatically to yours if you think your calculation is even remotely applicable to what I was outlining.

While it's really cool that you have the ability to run calculations, the results are irrelevant if they aren't applied to the actual scenario, so you get an "A" for effort and an "F" for accuracy.

 

[E30addixt]

Oh for the love of satan, what are you talking about? Will you just once stop and think? Your calculations have absolutely nothing to do with the scenario I described.

Fact: $20 per week over the course of one year means that I don't have the full $1000 sitting around for one year, let alone ten years. Seriously, where did you come up with ten years? You're not allowed to make up data. One year ≠ ten years. $20/week over one year ≠ $1000 for an entire year.

Fact: If that $20 per week wasn't parked as a credit to the IRS, it would -- at best -- be parked in my checking account, if not fittered away in the course of routine spending. My checking account doesn't pay interest so what's the difference?

Fact: Even if I decided to be a shrewd investor and put the whole grand in an interest-bearing account for a year compounded daily at 5% annually, I would end up with a whole extra $56. But where would I get 5%? In a savings account? Doubt it. Any account I could use to get 5% interest for a year would involve transaction fees at some point along the way and the interest would be taxed and besides, I wasn't talking about storing $1000 for a year. I described putting aside $1000 over the course of a year, $20 at a time.

I admitted my own "delusion" in seeing that extra refund as a windfall. Of course that's a delusion and I know it. But my delusion pales dramatically to yours if you think your calculation is even remotely applicable to what I was outlining.

While it's really cool that you have the ability to run calculations, the results are irrelevant if they aren't applied to the actual scenario, so you get an "A" for effort and an "F" for accuracy.

Sorry you don't understand what you write. You said an EXTRA $20. That EXTRA $20 can add up. I picked 10 years as one example and 40 as another. Pick 1 year, 2 years, 5 years, 10, 20 or whatever. I chose 5% because it's actually UNDER the average annual return you can earn from simply choosing index funds, most of which trade with no fee.

The bottom line is that EXTRA $20 adds up huge over time. If you set your finances up right your witholding will cover your tax obligation and that EXTRA $20 a week that you get back as a $1,000 lump sum at the end of the year will go much further.

Things are slow right now so maybe do some research on personal finance and learn a few things to better your position in life. It's up to you if you want to keep living paycheck to paycheck; maybe the government will save you when it's time to retire

Here's your first link.....

https://www.saving.org/regular-savings/20/week

 

[DustyToad]

You can lead a horse to water but you can’t make him drink it.

 

[Bonmot]

Sorry you don't understand what you write. You said an EXTRA $20. That EXTRA $20 can add up. I picked 10 years as one example and 40 as another. Pick 1 year, 2 years, 5 years, 10, 20 or whatever. I chose 5% because it's actually UNDER the average annual return you can earn from simply choosing index funds, most of which trade with no fee.

The bottom line is that EXTRA $20 adds up huge over time. If you set your finances up right your witholding will cover your tax obligation and that EXTRA $20 a week that you get back as a $1,000 lump sum at the end of the year will go much further.

Things are slow right now so maybe do some research on personal finance and learn a few things to better your position in life. It's up to you if you want to keep living paycheck to paycheck; maybe the government will save you when it's time to retire

Here's your first link.....https://www.saving.org/regular-savings/20/week

Go away.
Just. Go. Away.

 

[E30addixt]

Go away.
Just. Go. Away.

Awwww, did that make your brain hurt? Enjoy always having no money :thumbup:

You can lead a horse to water but you can't make him drink it.

Yup!!