Filing taxes and 2nd round of stimulus money

[aricia]

I haven’t filed our 2019 taxes yet. Our 2018 tax return allowed us to collect the full stimulus amount. Should I file an extension for our 2019 taxes and delay filing in order to try and maximize any possible second stimulus payment? Is there any significant downside to this?

[CCL]

Are you saying you won't qualify based on 2019 tax return?

[aricia]

If the income limits for the second stimulus are the same as the first, we will be mostly phased out based on our 2019 return.

[Tiny]

Is your big increase in income for 2019 a one time thing (and your income in 2020 will drop back to the 2018 level?) 

[billisonboard]

Jul 5, 2020 16:20:00 GMT -5 aricia said:

I haven’t filed our 2019 taxes yet. Our 2018 tax return allowed us to collect the full stimulus amount. Should I file an extension for our 2019 taxes and delay filing in order to try and maximize any possible second stimulus payment? Is there any significant downside to this?

I would question the morality of what you are proposing but not sure you would consider that a "significant downside".

[aricia]

2020 income is unlikely to drop.
My morality does not extend to the federal government beyond not breaking the law. 😂 They already spend plenty of my tax dollars on things I find ethically questionable. That said, we have intentionally used our stimulus money to provide additional support to local businesses and non-profits, which fits my morals just fine.

[oped]

Corporations sure don’t care about taking full advantage of every tax break or government benefit possible.

[Deleted]

Jul 6, 2020 13:43:02 GMT -5 oped said:

Corporations sure don’t care about taking full advantage of every tax break or government benefit possible.

I won't lie, but I'll play by the rules to my best advantage.

[oped]

Me too.

[giramomma]

I suppose not. But, at some point, I'd just want my taxes done...so that's one less thing off my plate. I haven't filed, yet, either. Of course, we just got our paperwork done for taxes...and frankly, the thought of doing it again in 7 months makes me

Who knows if/when we'll get a second stimulus. It might not be a direct payment. It could be a payroll tax cut.  It seems as if folks are mulling over lots of things.

[jerseygirl]

We put off filing till July 15, owe money and now it coincides with property taxes
Ugh

[tallguy]

Jul 6, 2020 13:53:20 GMT -5 minnesotapaintlady said:

Jul 6, 2020 13:43:02 GMT -5 oped said:

Corporations sure don’t care about taking full advantage of every tax break or government benefit possible.

I won't lie, but I'll play by the rules to my best advantage.

As I have long said, "It's all a game.  I don't make the rules, I only play by them.  But, if you are going to play, play to win!"  

[kadee79]

Mitch has been talking about those making $40,000 or less were the hardest hit...I'm thinking it will be lower incomes "IF" there is more stimulus to come.  I sure wouldn't count on getting any of it.

[aricia]

Jul 6, 2020 14:11:00 GMT -5 giramomma said:

I suppose not. But, at some point, I'd just want my taxes done...so that's one less thing off my plate. I haven't filed, yet, either. Of course, we just got our paperwork done for taxes...and frankly, the thought of doing it again in 7 months makes me

Who knows if/when we'll get a second stimulus. It might not be a direct payment. It could be a payroll tax cut.  It seems as if folks are mulling over lots of things.

My thoughts are very similar to Gira’s above, but if that’s the limit to the downside of waiting to file, I think I might take that bet. Technically, I suppose I’ll lose the interest on the refund I am owed. I think that’s about the price of the lotto ticket I buy once every three years. 🙂
I’ve never filed for an extension and am not sure if there are any other downsides I should think about. I will be receiving a refund on both federal and state.

[giramomma]

It seems like Mitch is thinking it's best to give folks who make less than 40K the cash stimulus.

[justme]

Which is just not entirely true. Those that make under 40k are closer to what unemployment pays out than those that make more. So if you make over 40k and lost your job you've lost a lot of money without the $600/week. Personally regular unemployment doesn't even cover my mortgage in my state and with the mortgage I'm a hundred or two at minimum below rent for my place.

[justme]

I also really hate the idea of oh we'll give them a bonus when they get a job. That's nice and all, but when you finally get a paycheck again is when you don't need money.

While I fully understand the bad optics of having unemployment pay more than people make, I feel like it's taking away from how little it pays. Even with the $600 extra a week almost every state that equates to a salary in the 40k range. 600x52 is over 31k so in reality unemployment equals around 10-15k/ year salary.

Like you don't get unemployment if you quite, why have we decided it's ok that you're practically destitute if you lose your job through no fault of your own? Are we that fucking pyscho evil? Maybe if people weren't looking at below survivability wages maybe we'd be spending more in the economy.

[oped]

Jul 6, 2020 21:41:06 GMT -5 aricia said:

Jul 6, 2020 14:11:00 GMT -5 giramomma said:

I suppose not. But, at some point, I'd just want my taxes done...so that's one less thing off my plate. I haven't filed, yet, either. Of course, we just got our paperwork done for taxes...and frankly, the thought of doing it again in 7 months makes me

Who knows if/when we'll get a second stimulus. It might not be a direct payment. It could be a payroll tax cut.  It seems as if folks are mulling over lots of things.

My thoughts are very similar to Gira’s above, but if that’s the limit to the downside of waiting to file, I think I might take that bet. Technically, I suppose I’ll lose the interest on the refund I am owed. I think that’s about the price of the lotto ticket I buy once every three years. 🙂
I’ve never filed for an extension and am not sure if there are any other downsides I should think about. I will be receiving a refund on both federal and state.

If you are getting a refund. Nothing. I file every year because I have to wait for my father's corp to file before I can even though it barely changes my final amount every year. I just have her run the majority of my taxes in spring but don't file until I get the rest of the info. The biggest issue was the year I didn't do that and 1) tried to remember things when I was almost at the end of the next tax year and 2) made a calculation mistake and ended up owning money... so then also owed penalties and fines, etc... 

[jelloshots4all]

I would file the 2019.  I highly doubt that the IRS is going to look at new tax returns to determine payments.  That would be a clusterf@ck!  I'm sure they will use the info they have on hand already

[aricia]

Thanks oped, that’s helpful.

[aricia]

Jul 7, 2020 16:53:47 GMT -5 jelloshots4all said:

I would file the 2019.  I highly doubt that the IRS is going to look at new tax returns to determine payments.  That would be a clusterf@ck!  I'm sure they will use the info they have on hand already

Hmmm, I believe that last time they used 2019, or 2018 if you hadn’t filed yet. I think there are tons of unknowns with a second stimulus but do not share your level of confidence to “be sure they will use the info they have on hand already.” What leads you to think they won’t update that with the new returns they’ve processed?
If it costs me nothing to delay, and I -might- benefit by doing so, why should I file now?

[Deleted]

Jul 7, 2020 16:53:47 GMT -5 jelloshots4all said:

I would file the 2019.  I highly doubt that the IRS is going to look at new tax returns to determine payments.  That would be a clusterf@ck!  I'm sure they will use the info they have on hand already

Like the government cares about complicating things!  It's actually based on your 2020 return, so if you didn't qualify with whatever they have on file and do this year you'll still get it. 

[jelloshots4all]

Jul 7, 2020 17:09:30 GMT -5 aricia said:

Jul 7, 2020 16:53:47 GMT -5 jelloshots4all said:

I would file the 2019.  I highly doubt that the IRS is going to look at new tax returns to determine payments.  That would be a clusterf@ck!  I'm sure they will use the info they have on hand already

Hmmm, I believe that last time they used 2019, or 2018 if you hadn’t filed yet. I think there are tons of unknowns with a second stimulus but do not share your level of confidence to “be sure they will use the info they have on hand already.” What leads you to think they won’t update that with the new returns they’ve processed?
If it costs me nothing to delay, and I -might- benefit by doing so, why should I file now?

I meant this for those that were stressing about wanting to get 2019 filed.  My assumption is based on the fact that I believe the IRS is way behind on processing returns, so filing this late, this close to the new deadline will be a bottleneck at the IRS.

I didn't qualify for the stimulus check based on my 2018 taxes and knew I wouldn't based on my 2019 taxes.  I filed because I received a refund.

[Lizard Queen]

It's due in a few days. I'd just file. It sounds like it will be much harder to qualify this time around. Even we're iffy, and we don't make that much! If it's $40k per household, no way. If that's doubled for married couples, I'd have to check our return. If you qualified previously only from 2018 #'s, what's the likelihood you'd qualify under much lower thresholds?