I have not filed my taxes yet. I have filled it all out online but because of an error on my W-2 I held off just to find out about the incoming COVID checks the next day.

As I understand it, the amount received is based on your AGI (annual gross income). For incomes over $75k the amount is reduced the higher your income up to $99k. In 2018 I made quite a bit less than I did in 2019.

My question is whether I should wait to file after I've received a check, file now, or whether the amount has already been decided by now. I know the tax deadline has been extended to July and I'm not in a big rush to receive my return.

Amount is based off of 2018 taxes.

If you haven't filed for 2019 they will base it off 2018

Is it true that if you go over the $75k on your 2020 tax return that you will owe the money back? I saw a substantial pay raise towards the end of 2019 that if based on 2020 earnings would put me out of the bracket.

I read in a couple of articles that there will be no clawback.

IrishTxAggie said:

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Amount is based off of 2018 taxes.

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I thought it was 2019.

exp said:

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IrishTxAggie said:

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Amount is based off of 2018 taxes.

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I thought it was 2019.

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Don't see how they could base it off of 2019 with people not having done their taxes yet and now some extending that out until July

IrishTxAggie said:

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exp said:

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IrishTxAggie said:

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Amount is based off of 2018 taxes.

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I thought it was 2019.

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Don't see how they could base it off of 2019 with people not having done their taxes yet and now some extending that out until July

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From what I understand, its an either-or. If you've filed 2019 (and they processed) then it's based on 19. Otherwise it's based on 18.

Their intent was to have your "last known income."

What's gonna be interesting is what happens for folks who legitimately didn't file in 2018 or 2019, for example if someone was deployed in 2018 they're allowed to defer a whole year.

Here you go:

https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/

Looks like my laziness in getting around to my taxes is gonna get me some of that $$$

One thing that is not very clear, and I'm still unsure about it, is the fact the check may be reported as a credit on your 2020 tax return. And for those that haven't filed 2019 yet because it would throw them over, but they qualified for the full amount based on 2018 AGI, it is possible you could have to enter the AGI for both years on the 2020 return. Then you may have to repay some of the check based on your 2019 income going up that should have disqualified some or all of your stimulus.

Again, I don't know how it is actually going to work, but I have heard people say they heard/saw something about credits on your tax return. This is just a guess as to how it may work as a warning to those that could be affected so as to not spend it all and then find out you have to pay some or all back. I've been searching for a better source on the credit, but the article linked above is the best I've seen and I don't know that it is accurately reporting all possible scenarios.

From what I understand, this is considered a tax refund advance. The 2018/19 taxes just give them a way to approximate who gets it. We all true up (get more or pay back some) when we file for 2020.

Edit: Found an article talking about it: https://www.forbes.com/sites/jimwang/2020/03/27/how-to-maximize-your-coronavirus-stimulus-check/#7924736210b9

" If the IRS gives you too much of a stimulus check, you could be asked to pay back the difference but not until you file your return on April 15, 2021. You will not be assessed interest on the over-payment amount. If the IRS pays you too little, you'll get the difference added to your tax refund next year."

khkman22 said:

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One thing that is not very clear, and I'm still unsure about it, is the fact the check may be reported as a credit on your 2020 tax return. And for those that haven't filed 2019 yet because it would throw them over, but they qualified for the full amount based on 2018 AGI, it is possible you could have to enter the AGI for both years on the 2020 return. Then you may have to repay some of the check based on your 2019 income going up that should have disqualified some or all of your stimulus.

Again, I don't know how it is actually going to work, but I have heard people say they heard/saw something about credits on your tax return. This is just a guess as to how it may work as a warning to those that could be affected so as to not spend it all and then find out you have to pay some or all back. I've been searching for a better source on the credit, but the article linked above is the best I've seen and I don't know that it is accurately reporting all possible scenarios.

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I believe the only credits on your 2020 tax return would be if you were over the threshold on your 2019 return but had not filed yet so the IRS went off you 2018 return which showed a lower income.