MN-Investor
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Post by MN-Investor on Mar 27, 2020 16:30:55 GMT -5
There's a lot of financial items in the CARES Act (the stimulus bill). The article I'm linking to discusses a lot of its provisions including the checks to taxpayers, provisions affecting IRAs and 401(k)s and RMDs, and relief for small businesses. If you find other informative articles about aspects of the bill which you find helpful, maybe you can post them in this thread.
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haapai
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Post by haapai on Mar 27, 2020 17:15:16 GMT -5
Oh boy! We're going to be analyzing this for months. If you haven't been whalloped by unemployment, or fear having that happen to you soon, there are all sorts of angles to be played here. No wealth or expectations of future wealth are necessary, just reasonable confidence in your continued ability to make ends meet.
I am not used to this kind of thing. I'll be analyzing the "the" outta it for weeks.
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Deleted
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Post by Deleted on Mar 27, 2020 18:47:23 GMT -5
I'm enjoying the fact that they included the gig workers and offered us UI plus $600 a week for 4 months. If approved, I would make a year's income in 4 months.
I won't likely see the other stimulus due to a defaulted old student loan. I haven't seen anything about it, but I assume they will capture those payments just like tax returns.
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Deleted
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Post by Deleted on Mar 27, 2020 18:51:04 GMT -5
I'm enjoying the fact that they included the gig workers and offered us UI plus $600 a week for 4 months. If approved, I would make a year's income in 4 months. I won't likely see the other stimulus due to a defaulted old student loan. I haven't seen anything about it, but I assume they will capture those payments just like tax returns. Everything I have read says probably not on the old student loan. But you will know in 3 weeks. I don't want to offend you, but there is something wrong with the bill if you make more $$$ unemployed than you would employed. But that's the government's fault, not yours.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Mar 27, 2020 18:58:07 GMT -5
I am going to hazard a guess that if that happens it will be corrected on your tax returns the following year. I remember with the Bush stimulus that we got socked in the nose because of an error regarding how it was distributed. They couldn't claw back the checks so it was fixed come tax time.
So this round whatever we get will go straight into savings not to be touched if we can avoid it. As far as we know our jobs are secure but this is an unprecedented situation so i don't want to be speaking in absolutes.
If things start to turn with the business my share is going to that. I will be in a position to help and i want to do so.
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Miss Tequila
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Post by Miss Tequila on Mar 27, 2020 19:05:06 GMT -5
I'm enjoying the fact that they included the gig workers and offered us UI plus $600 a week for 4 months. If approved, I would make a year's income in 4 months. I won't likely see the other stimulus due to a defaulted old student loan. I haven't seen anything about it, but I assume they will capture those payments just like tax returns. Why would they pass a bill where you make 12 months of income in 4 months? This actually pisses me off. I’m onboard with making people whole but no one should benefit from this Not a knock against you. It’s a knock against the idiots that passed this bill
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Deleted
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Post by Deleted on Mar 27, 2020 19:06:25 GMT -5
Only thing I see that's beneficial to me and DH is the waiver of the 2020 RMD. Yes, another thread for that topic exists somewhere so I am just saying.
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mollyc
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Post by mollyc on Mar 27, 2020 20:16:27 GMT -5
Generally speaking, these things usually say "up to $" when you look at the fine print. Maybe if they are trying to be quick, they will pay it out on the front end. But then things are usually reconciled at the back end (tax time) in both our countries.
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lynnerself
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Post by lynnerself on Mar 27, 2020 20:27:15 GMT -5
Really interesting that they are using both the 2018 and 2019 tax returns to determine the amount of the checks. Whichever is the most recent filed. Also it will all be "trued up" for actual 2020 returns. From the above article One of the more confusing aspects of the Recovery Rebate is that it has a bit of a ‘split personality’, in that the initial amount paid will be based on either a taxpayer’s 2018 or 2019 income tax return (whichever is the latest return that the IRS has on file), while it will ultimately be ‘trued up’ if a taxpayer is owed money based on their actual 2020 income.
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Ava
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Post by Ava on Mar 27, 2020 21:23:49 GMT -5
I'm very glad for my friend and her husband. He lost his job and he was the main breadwinner. My friend makes very little money but carries the benefits.
Now, with the $2,400 coming their way and the beefed-up unemployment payments for 4 months they should be fine. He's highly employable in normal circumstances, but there's no demand for his skills right now (auto body technician).
I'm also glad for all those who have lost their jobs and will now receive help.
As for me personally, I will get $1,200, which I will save until things get back to normal. I also qualify for six months zero interest on my student loan. I already requested a deferment and I plan to save that money also. If things go well for me, I'll end up with $3,300 in cash on hand. But that depends on whether I can hold on to my job for the duration.
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tallguy
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Post by tallguy on Mar 28, 2020 2:20:22 GMT -5
Really interesting that they are using both the 2018 and 2019 tax returns to determine the amount of the checks. Whichever is the most recent filed. Also it will all be "trued up" for actual 2020 returns. From the above article One of the more confusing aspects of the Recovery Rebate is that it has a bit of a ‘split personality’, in that the initial amount paid will be based on either a taxpayer’s 2018 or 2019 income tax return (whichever is the latest return that the IRS has on file), while it will ultimately be ‘trued up’ if a taxpayer is owed money based on their actual 2020 income.
That is very good news, and is the first time I have seen that noted or explained. Both my GF and I did large Roth conversions last year which put us well over $100,000 for 2019. She filed early, so the IRS already has her 2019 return processed. I filed two weeks ago before the deadline was extended. As of a couple days ago, the IRS was not showing my return having been processed. I was hoping they would not have 2019 completed before the information was pulled to determine rebate eligibility. Now with this clarification, we will both receive the rebates. We just have to wait a year for them. Neither of us is in any financial distress, so waiting is not a problem at all. It made no sense to me before that all people would not be subject to the same rule of which year's income to use. It also seemed grossly unfair that I would not qualify because I filed my return earlier than necessary. And yes, I was angry. That is all cleared up now, and I can feel much better about it.
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tractor
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Post by tractor on Mar 28, 2020 7:14:22 GMT -5
I'm enjoying the fact that they included the gig workers and offered us UI plus $600 a week for 4 months. If approved, I would make a year's income in 4 months. I won't likely see the other stimulus due to a defaulted old student loan. I haven't seen anything about it, but I assume they will capture those payments just like tax returns. Why would they pass a bill where you make 12 months of income in 4 months? This actually pisses me off. I’m onboard with making people whole but no one should benefit from this Not a knock against you. It’s a knock against the idiots that passed this bill This is one of the key items that the Republicans wanted to point out and were using to hold up the bill. It creates the situation where people will get paid more NOT to work than those that do. However, in the rush to just get it done, everybody just ignored the obvious error and passed it as written. Shasta was quick to call out those getting the $1,200 as hypocrites, it also applies to those extra UI benefits, which will be far greater than the bonus check I will receive. Don’t really care either way, that’s just the way things work out sometime.
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Deleted
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Post by Deleted on Mar 28, 2020 7:45:46 GMT -5
Why would they pass a bill where you make 12 months of income in 4 months? This actually pisses me off. I’m onboard with making people whole but no one should benefit from this Not a knock against you. It’s a knock against the idiots that passed this bill This is one of the key items that the Republicans wanted to point out and were using to hold up the bill. It creates the situation where people will get paid more NOT to work than those that do. However, in the rush to just get it done, everybody just ignored the obvious error and passed it as written. Shasta was quick to call out those getting the $1,200 as hypocrites, it also applies to those extra UI benefits, which will be far greater than the bonus check I will receive. Don’t really care either way, that’s just the way things work out sometime. My sister said her and her husband will be bringing in $2000 per WEEK in unemployment. I about fell over.
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jeffreymo
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Post by jeffreymo on Mar 28, 2020 8:07:31 GMT -5
The scary part is as big as this package is, it’s not going to be enough if this pandemic stretches on for a year or more.
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resolution
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Post by resolution on Mar 28, 2020 8:26:07 GMT -5
Supposedly they made it a flat $600 per week because it would be more complicated to administer it based on income. I don't understand why it would take any longer than the flat $600 since the states all have the base wage info in their computers, but that is how it was justified. I expect that they just want to push money out where it will be spent and get it moving through the economy.
The personal impact to me is that the small business loans may keep my husband's employer open for a few more months. The additional unemployment income means that I won't be called upon to help family members with their mortgages for quite some time.
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billisonboard
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Post by billisonboard on Mar 28, 2020 9:49:05 GMT -5
I run a facility that hosts groups. Obviously we have zero groups so zero income so staff is laid off as of yesterday. There is a need for someone to forward bills to the bookkeeper, check the buildings periodically, etc. I was going to put in those part time hours. No problem with state unemployment benefits being adjusted for working some hours. Anyone hear anything on how that would impact the federal money? I know it is early for that type of detail but I need to be careful on this.
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jerseygirl
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Post by jerseygirl on Mar 28, 2020 10:30:15 GMT -5
Apparently the checks to individuals is based on agi, not taxable income. So think we won’t be eligible, would be eligible if it was taxable income Happy money is going to people having a rough time. If we do receive anything will send either to grandson and wife who lost their jobs or to local food pantry Grandson and wife may be fine with unemployment and the checks coming to them
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jeffreymo
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Post by jeffreymo on Mar 28, 2020 10:38:48 GMT -5
I run a facility that hosts groups. Obviously we have zero groups so zero income so staff is laid off as of yesterday. There is a need for someone to forward bills to the bookkeeper, check the buildings periodically, etc. I was going to put in those part time hours. No problem with state unemployment benefits being adjusted for working some hours. Anyone hear anything on how that would impact the federal money? I know it is early for that type of detail but I need to be careful on this. Can’t speak to your specifics, but even though the Fed says bump up the checks by $600, the state will be the ones sending you the funds. I’d assume all their calculation tables would just increase each bracket by 600. Then from that figure I believe each state factors in your weekly income to offset your unemployment check. In Ohio it is a calculation, and not a dollar for dollar decrease which ends up being to the claimants benefit.
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Post by The Walk of the Penguin Mich on Mar 28, 2020 11:10:38 GMT -5
Our income was 1/4 in 2019 as it was in 2018. As nothing has gone to the tax person yet, we are getting squat, as we should. If we did, it would probably go to the food bank.
My brother got laid off very early in this, and he has said he will try to manage without unemployment. I really hope he changes his mind because he is who this was written for.
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movingforward
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Post by movingforward on Mar 28, 2020 11:22:42 GMT -5
I will not get much, which I am fine with. What I do get will probably go to charity.
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Gardening Grandma
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Post by Gardening Grandma on Mar 28, 2020 11:30:08 GMT -5
I am assuming that taxes will be owed on the money? Is that correct?
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Mar 28, 2020 15:04:02 GMT -5
Why would they pass a bill where you make 12 months of income in 4 months? This actually pisses me off. I’m onboard with making people whole but no one should benefit from this Not a knock against you. It’s a knock against the idiots that passed this bill This is one of the key items that the Republicans wanted to point out and were using to hold up the bill. It creates the situation where people will get paid more NOT to work than those that do. However, in the rush to just get it done, everybody just ignored the obvious error and passed it as written. Shasta was quick to call out those getting the $1,200 as hypocrites, it also applies to those extra UI benefits, which will be far greater than the bonus check I will receive. Don’t really care either way, that’s just the way things work out sometime. I work in retail — a lower-paying industry. Many of my co-workers are applying for UI because they can make more collecting than working. I’m still being offered hours, but less than my usual 40+/week, so I am not unemployed. Pisses me off that I’m in this under-paid predicament. If I didn’t want to make sure *I* still have a job when this is over, I’d probably ask to be laid off, too.
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Deleted
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Post by Deleted on Mar 28, 2020 15:14:05 GMT -5
I am assuming that taxes will be owed on the money? Is that correct? No. They are tax free.
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msventoux
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Post by msventoux on Mar 28, 2020 15:33:35 GMT -5
This is one of the key items that the Republicans wanted to point out and were using to hold up the bill. It creates the situation where people will get paid more NOT to work than those that do. However, in the rush to just get it done, everybody just ignored the obvious error and passed it as written. Shasta was quick to call out those getting the $1,200 as hypocrites, it also applies to those extra UI benefits, which will be far greater than the bonus check I will receive. Don’t really care either way, that’s just the way things work out sometime. I work in retail — a lower-paying industry. Many of my co-workers are applying for UI because they can make more collecting than working. I’m still being offered hours, but less than my usual 40+/week, so I am not unemployed. Pisses me off that I’m in this under-paid predicament. If I didn’t want to make sure *I* still have a job when this is over, I’d probably ask to be laid off, too. Can you still get unemployment? I’ve never had to draw before, but a number of clients are asking for themselves and their staff. It appears in my state if you have to work reduced hours you may be eligible for reduced benefits.
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billisonboard
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Post by billisonboard on Mar 28, 2020 15:35:36 GMT -5
I am assuming that taxes will be owed on the money? Is that correct? No. They are tax free. I did read the $1200 checks were tax free. Did you see something that the unemployment $600 was also?
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billisonboard
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Post by billisonboard on Mar 28, 2020 15:37:47 GMT -5
I work in retail — a lower-paying industry. Many of my co-workers are applying for UI because they can make more collecting than working. I’m still being offered hours, but less than my usual 40+/week, so I am not unemployed. Pisses me off that I’m in this under-paid predicament. If I didn’t want to make sure *I* still have a job when this is over, I’d probably ask to be laid off, too. Can you still get unemployment? I’ve never had to draw before, but a number of clients are asking for themselves and their staff. It appears in my state if you have to work reduced hours you may be eligible for reduced benefits. In Washington state you are eligible. I am curious on the new federal money however.
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Deleted
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Post by Deleted on Mar 28, 2020 15:43:35 GMT -5
I did read the $1200 checks were tax free. Did you see something that the unemployment $600 was also? No idea on the unemployment. I was just talking about the $1200. I'm guessing no on the unemployment.
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GRG a/k/a goldenrulegirl
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Post by GRG a/k/a goldenrulegirl on Mar 28, 2020 15:44:29 GMT -5
I work in retail — a lower-paying industry. Many of my co-workers are applying for UI because they can make more collecting than working. I’m still being offered hours, but less than my usual 40+/week, so I am not unemployed. Pisses me off that I’m in this under-paid predicament. If I didn’t want to make sure *I* still have a job when this is over, I’d probably ask to be laid off, too. Can you still get unemployment? I’ve never had to draw before, but a number of clients are asking for themselves and their staff. It appears in my state if you have to work reduced hours you may be eligible for reduced benefits. You can collect the difference in Massachusetts IF your employer enrolls in the WorkShare program. Mine has not enrolled.
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Bonny
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Post by Bonny on Mar 28, 2020 17:19:47 GMT -5
I'm wondering if my father is going to get a check and what will happen to the money? He has a pending Medicaid Long Term Care application. They will take all of his income as share of cost. $1200 will put him about $700 over the annual income limit.
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Deleted
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Post by Deleted on Mar 28, 2020 17:38:20 GMT -5
Apparently the checks to individuals is based on agi, not taxable income. So think we won’t be eligible, would be eligible if it was taxable income Happy money is going to people having a rough time. If we do receive anything will send either to grandson and wife who lost their jobs or to local food pantry Grandson and wife may be fine with unemployment and the checks coming to them You have confused me . . . because I am not tax savvy. I thought AGI (adjusted gross income) is less than your gross income because it factors in the standard deduction or your itemized deductions. Are you saying that gross income is the defining factor? Is that what you mean by "taxable income"?
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