Stimulus deposit

[quincy]

Those who did not file returns but are collecting social security (etc) benefits should get their stimulus checks next Wednesday. The IRS site says checks are being sent out on Wednesdays only.

 

[davew9128]

You seem pretty sure of that. Why is that?

Because the law specifically stated that the rebate reconciliation on the 2020 tax return cannot go below zero.

 

[adjusterjack]

Then maybe they started on both coasts and are heading to meet in the middle.

 

[commentator]

No tax expert here, but today a person who was asking about this situation, because his mother had passed away since filing taxes, and his father still got the stimulus check today with her amount in it had this question answered. I believe it may have been in the Washington Post I saw this. The father and mother had been filing joint returns, of course, he today received a check for $2400. Their son was told by the columnist who had cited someone in the federal agency they had verified this with and they said it would NOT be clawed back, was his to keep. I was surprised by that answer.

 

[quincy]

No tax expert here, but today a person who was asking about this situation, because his mother had passed away since filing taxes, and his father still got the stimulus check today with her amount in it had this question answered. I believe it may have been in the Washington Post I saw this. The father and mother had been filing joint returns, of course, he today received a check for $2400. Their son was told by the columnist who had cited someone in the federal agency they had verified this with and they said it would NOT be clawed back, was his to keep. I was surprised by that answer.

I read the same thing somewhere (a news article of some sort, I believe). I suspect that any excess funds sent probably will have to be reported as income on 2020’s return.

 

[davew9128]

I read the same thing somewhere (a news article of some sort, I believe). I suspect that any excess funds sent probably will have to be reported as income on 2020’s return.

The law says nothing of the sort. It's not income and it doesn't need to be repaid. The relevant section is the new IRC 6428(e).

https://irc.bloombergtax.com/public/uscode/doc/irc/section_6428
I.R.C. § 6428(e) Coordination With Advance Refunds Of Credit
I.R.C. § 6428(e)(1)In General —
The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

IRC 6213 merely deals with mathematical errors on filed tax returns and 6428(f) deals with the timing and manner of the advanced payments, also known as stimulus.

 

[quincy]

Thank you. So the overpayment is not considered income and does not need to be repaid? That’s nice.

 

[stealth2]

PS: My sister in NYC got her $1200. I don't have mine yet. I wonder if the gummint started on east coast and is slowly working its way west like the pioneers in their wagons.

Or are they going by SS#?

ETA: I just checked mine (which was correct) and for my parents (my dad passed last year) - both of theirs state that the status is unavailable.

 

[PayrollHRGuy]

My wife and I got ours yesterday as well.

 

[commentator]

Have heard from several people who've lost loved ones this year, who got a stimulus check for that loved one yesterday, deposited in the account where they had filed their 2018 or 2019 taxes. They're all rather terrified for the IRS has been known to be like the Mounties, "we will come after you and we will get our money back" and so they all fully expect to have to load it up and send it back. Looking for answers here.

 

[LdiJ]

Have heard from several people who've lost loved ones this year, who got a stimulus check for that loved one yesterday, deposited in the account where they had filed their 2018 or 2019 taxes. They're all rather terrified for the IRS has been known to be like the Mounties, "we will come after you and we will get our money back" and so they all fully expect to have to load it up and send it back. Looking for answers here.

I have been recommending that anyone who gets a stimulus for a deceased spouse or child, put that part of their stimulus payment away in a saving's account until after they do their 2020 taxes. The stimulus payment will be resolved on the 2020 tax return so if they have to pay any of it back, that is likely where it will have to be paid back.

 

[quincy]

I have been recommending that anyone who gets a stimulus for a deceased spouse or child, put that part of their stimulus payment away in a saving's account until after they do their 2020 taxes. The stimulus payment will be resolved on the 2020 tax return so if they have to pay any of it back, that is likely where it will have to be paid back.

I think putting any overpayment aside is the smartest action to take. I have a sneaking suspicion that overpayments will have to be “repaid” in some way at some point in time. Overpayments probably should not be considered windfalls - free money to use as one wishes - because of a government oops.

 

[quincy]

https://abcnews.go.com/Politics/stimulus-checks-hit-bank-accounts-encounter-roadblocks/story?id=70165280&cid=clicksource_4380645_4_three_posts_card_hed

Problems are many ...

 

[LdiJ]

https://abcnews.go.com/Politics/stimulus-checks-hit-bank-accounts-encounter-roadblocks/story?id=70165280&cid=clicksource_4380645_4_three_posts_card_hed

Problems are many ...

I knew it was going to be like this. On top of that, many of the people who are going to end up getting checks have moved since their last tax return was sent in. In order to change your address with the IRS you have to fill out form 8822 and mail it in to the IRS. The IRS does not have anyone working right now who can process things like that and therefore the address change is unlikely to happen in time. There is no online portal to change addresses (and there should not be) so those people are going to have problems too.

My advice has been to keep renewing your forwarding address information with the post office.

 

[Taxing Matters]

Problems are many ...

I'm not surprised given what I know of how the IRS operates and what Congress required of the agency in getting out these checks. The IRS has imperfect information; people die, move, get divorced, married, change bank accounts, etc., after they filed their last return with the IRS. So when Congress told the IRS to just go with the information it already had to get these payments out quickly it was inevitable that there would be problems in getting the payments out in the right amounts to the right accounts/addresses. That said, given what the purpose of the program is, it is probably better going this route to get payments out faster than waiting for the IRS to design a system that would have much better targeted the payments.