I Feel Guilty...I need to vent...

[dcfromva]

So, just to recap--
The 3rd stimulus payment applies to 2021 income. The IRS is basing the payments on the latest tax return info they have (2019, if you haven't filed 2020 yet).

If you did not receive the stimulus payment because you already filed your 2020 tax return and it exceeded the limit, but your actual 2021 AGI does not exceed the limit, you can still get the stimulus payment when you file your 2021 taxes.

There may be some painless ways to reduce AGI--such as if you are currently making Roth contributions to your 401k--you could switch to pretax contributions.

You might look at the trade offs for increasing pretax contributions to 401k (if you are not already maxing contributions) in order to qualify for stimulus payment.

The eligibility amounts are as follows:

• $75,000 for individuals (including single tax filers or a married person filing separately)
• $112,500 for those filing as head of household
• $150,000 for married couples who file a joint return, or those filing as a qualifying widow or widower

Once that threshold is met, taxpayers may still be eligible to receive reduced amounts. But the stimulus checks phase out entirely for those whose adjusted gross income is over the following amounts:

• $80,000 for individuals
• $120,000 for those filing as head of household
• $160,000 for married couples filing jointly, or those filing as a qualifying widow or widower

 

[jliehr]

We also received nothing from the last two and short of losing a job won’t be able to reduce our income enough for 2021. I truly am happy that people who need help are getting it, but the people using it for vacations and discretionary spending make me jealous. We give the government more than we pay for our house annually. I’m not happy that my tax dollars are going to billionaire bailouts and CEO salaries.

 

[kristenrice]

So, just to recap--
The 3rd stimulus payment applies to 2021 income. The IRS is basing the payments on the latest tax return info they have (2019, if you haven't filed 2020 yet).

If you did not receive the stimulus payment because you already filed your 2020 tax return and it exceeded the limit, but your actual 2021 AGI does not exceed the limit, you can still get the stimulus payment when you file your 2021 taxes.

There may be some painless ways to reduce AGI--such as if you are currently making Roth contributions to your 401k--you could switch to pretax contributions.

You might look at the trade offs for increasing pretax contributions to 401k (if you are not already maxing contributions) in order to qualify for stimulus payment.

The eligibility amounts are as follows:

• $75,000 for individuals (including single tax filers or a married person filing separately)
• $112,500 for those filing as head of household
• $150,000 for married couples who file a joint return, or those filing as a qualifying widow or widower

Once that threshold is met, taxpayers may still be eligible to receive reduced amounts. But the stimulus checks phase out entirely for those whose adjusted gross income is over the following amounts:

• $80,000 for individuals
• $120,000 for those filing as head of household
• $160,000 for married couples filing jointly, or those filing as a qualifying widow or widower

So when I file my 2021 taxes next year, I *will* get the third stimulus payment? Even though my oldest child will be 18 by then? We will not even come close to a combined $160K this year...won't even hit the $150K, so I am wondering how this will work??

 

[lsutigers03]

So, just to recap--
The 3rd stimulus payment applies to 2021 income. The IRS is basing the payments on the latest tax return info they have (2019, if you haven't filed 2020 yet).

If you did not receive the stimulus payment because you already filed your 2020 tax return and it exceeded the limit, but your actual 2021 AGI does not exceed the limit, you can still get the stimulus payment when you file your 2021 taxes.

There may be some painless ways to reduce AGI--such as if you are currently making Roth contributions to your 401k--you could switch to pretax contributions.

You might look at the trade offs for increasing pretax contributions to 401k (if you are not already maxing contributions) in order to qualify for stimulus payment.

The eligibility amounts are as follows:

• $75,000 for individuals (including single tax filers or a married person filing separately)
• $112,500 for those filing as head of household
• $150,000 for married couples who file a joint return, or those filing as a qualifying widow or widower

Once that threshold is met, taxpayers may still be eligible to receive reduced amounts. But the stimulus checks phase out entirely for those whose adjusted gross income is over the following amounts:

• $80,000 for individuals
• $120,000 for those filing as head of household
• $160,000 for married couples filing jointly, or those filing as a qualifying widow or widower

What if you're under for 2020 and get the stimulus but will be over for 2021? Will you have to pay anything back?

 

[RamblingMad]

I'm pretty sure it's based on the latest tax filing.

https://www.businessinsider.com/personal-finance/who-gets-the-third-stimulus-check-2021-2?op=1

 

[dcfromva]

So when I file my 2021 taxes next year, I *will* get the third stimulus payment? Even though my oldest child will be 18 by then? We will not even come close to a combined $160K this year...won't even hit the $150K, so I am wondering how this will work??

Yes--if you will be below 150k (MFJ) in 2021 you will get the 3rd stimulus payment. I don't know much about the child tax credits, but I assume it would be the child's age in 2021 (I'd have to google this). When you file 2021 taxes, your tax software will ask you whether you received the stimulus in 2021.
Here is a link to the explanation in turbotax for the 2020 taxes (pertaining to the 1st and 2nd stimulus payments): https://blog.turbotax.intuit.com/ta...2/what-is-a-recovery-rebate-tax-credit-48681/

 

[dcfromva]

What if you're under for 2020 and get the stimulus but will be over for 2021? Will you have to pay anything back?

I'm still looking around for the answer to this question in regards to the 3rd stimulus payment for 2021.
But, this is the how the 2020 stimulus payments worked:

What if it turns out that your stimulus payment was more than you were actually allowed? For example, suppose the IRS based your stimulus payment on your 2018 or 2019 tax return, when your income was lower, but your income is much higher for 2020? “If someone has income in 2020 that is higher than the tax return to calculate the advance rebate, they will not have to pay the credit back,” says Garrett Watson, senior tax policy analyst for the Tax Foundation, an independent, nonprofit tax policy organization. “In other words, any adjustments to a taxpayer's rebate on 2020 tax returns will be in the taxpayer's favor."

https://www.aarp.org/money/taxes/info-2020/are-stimulus-checks-taxed.html

 

[DCLMP]

Why did you file your taxes? There's was so much talk prior to the stimulus bill that we're going to lower the threshold. I think at one point there were rumors of 120k. I really don't understand why you filed early if you knew you made more in 2020.

 

[Disneyfan754321]

I know this doesn't mean much from just dis family member. THANK YOU for being front line workers.

 

[dcfromva]

OP, I would also like to add my thank you for being front line workers as well.

The following are clips from an article in The Wall Street Journal
The New Stimulus Act Offers Big Benefits for Families
By Laura Sanders Updated March 19, 2021 5:37 am ET

... The Internal Revenue Service is sending payments now, but people who aren’t eligible based on 2019 or 2020 income and do qualify based on 2021 income can get rebate credits for these amounts next year through their 2021 tax returns...

...The extra child tax credit is up to $1,600 per child under 6 and $1,000 per child under 18 at year-end. This is in addition to the existing child credit of up to $2,000 per child, which this year applies to dependents who are under 18 at year-end, versus under 17 in other years.
Starting July 1, taxpayers may receive advance payments of part of these benefits from the IRS. Details haven’t been announced....

Entire article found here:

https://www.wsj.com/articles/the-new-stimulus-act-offers-huge-benefits-for-families-11616146202

 

[kristenrice]

I know this doesn't mean much from just dis family member. THANK YOU for being front line workers.

OP, I would also like to add my thank you for being front line workers as well.

Thank you...It's my pleasure! I love my job.

 

[mistysue]

...The extra child tax credit is up to $1,600 per child under 6 and $1,000 per child under 18 at year-end. This is in addition to the existing child credit of up to $2,000 per child, which this year applies to dependents who are under 18 at year-end, versus under 17 in other years.
Starting July 1, taxpayers may receive advance payments of part of these benefits from the IRS. Details haven’t been announced....

Now I just feel like I AM being picked on. My daughter turned 17 last year, our dependent credit is $500 both years, if she was born the next year between stimulus and tax credits should would be handed $3,600! I wonder why they extended it to 18 for only one year? Which senator has a 16 year old?

 

[dcfromva]

Now I just feel like I AM being picked on. My daughter turned 17 last year, our dependent credit is $500 both years, if she was born the next year between stimulus and tax credits should would be handed $3,600! I wonder why they extended it to 18 for only one year? Which senator has a 16 year old?

It looks like the 18 year old can get the 3rd stimulus credit (depending on whether the parent(s) meet the income eligibility). Here is an article from Forbes magazine:

Adult Dependents Are Eligible for the $1,400 Stimulus Check
https://www.forbes.com/advisor/personal-finance/do-adult-dependents-get-third-stimulus-check/

 

[DCLMP]

Now I just feel like I AM being picked on. My daughter turned 17 last year, our dependent credit is $500 both years, if she was born the next year between stimulus and tax credits should would be handed $3,600! I wonder why they extended it to 18 for only one year? Which senator has a 16 year old?

Haven't you learned by now that life isn't always fair? I would gladly give back all my stimulus and child credits for a normal life.

 

[havaneselover]

Now I just feel like I AM being picked on. My daughter turned 17 last year, our dependent credit is $500 both years, if she was born the next year between stimulus and tax credits should would be handed $3,600! I wonder why they extended it to 18 for only one year? Which senator has a 16 year old?

Same here. DD turned 17 in 2020. So last year we got $500. But kids turning 17 this year get $3000???

And I'm one of the lucky few who saw my taxes increase with the last tax cut. It wasn't kind to a lot of single parents.

 

[havaneselover]

It looks like the 18 year old can get the 3rd stimulus credit (depending on whether the parent(s) meet the income eligibility). Here is an article from Forbes magazine:

Adult Dependents Are Eligible for the $1,400 Stimulus Check
https://www.forbes.com/advisor/personal-finance/do-adult-dependents-get-third-stimulus-check/

Yes on the stimulus check. It's the child tax credit that is so weird. It went from $2k to $500 the year the child turns 17. But for 2021, they allowed the children turning 17 to be included in the higher $3,000 tax credit. And I believe it's only this year. I have one turning 16 and one turning 18 so I'm out of luck!

 

[AndreaDM]

Yep, another one with one who turned 17 in 2020.

 

[mistysue]

Haven't you learned by now that life isn't always fair? I would gladly give back all my stimulus and child credits for a normal life.

We can't have normalcy back, It's still ridiculous that a child a couple months younger than my daughter gets not only an extra year with child tax credits, But it increased credit amount plus got included in two stimulus packages she didn't get. She was held back a year so yes, it's annoying that all of her peers get an extra $3,600. They cost the same amount to raise.

 

[DCLMP]

We can't have normalcy back, It's still ridiculous that a child a couple months younger than my daughter gets not only an extra year with child tax credits, But it increased credit amount plus got included in two stimulus packages she didn't get. She was held back a year so yes, it's annoying that all of her peers get an extra $3,600. They cost the same amount to raise.

I have a just turned 18 year old. I knew when they passed the new tax code in 2017 that I would not get the child tax credit for him on this years taxes. If things stay as they are my 16 year old will be aged out when I do my 2023 taxes. None of this is a surprise. It’s the same rules for everyone so I’m not sure how the “it’s not fair rants” are justified.

 

[havaneselover]

I have a just turned 18 year old. I knew when they passed the new tax code in 2017 that I would not get the child tax credit for him on this years taxes. If things stay as they are my 16 year old will be aged out when I do my 2023 taxes. None of this is a surprise. It’s the same rules for everyone so I’m not sure how the “it’s not fair rants” are justified.

I don't really hear ranting. Just weird that kids turning 17 last year got $500. Kids turning 17 this year get $3,000. Kids turning 17 next year will get $500. And my 16 year old will be aged out in 2023 when I do my 2022 taxes as far as I know.