Stimulus Check

[danleach]

On the basis of my 2018 tax return, I was not eligible for a stimulus check (because of a large IRA withdrawal). But I am eligible on the basis of my 2019 income. However, I filed my 2019 tax return on April 19th, after the stimulus checks were mailed out. Is there any way that I am now going to get a stimulus check?

Daniel L.

[NCperson]

it'll work itself out, but may not until you file  next year.  Here is why. 

• The stimulus payments are really based on your 2020 tax return (income, dependents, etc).
• The IRS is using either 2018 or 2019 – whatever is available  - to ESTIMATE that payment
• When you file next year there will be a “settle up” section on the tax return. 
• If you are due more stimulus (and this would include where you simply never received it), you will receive it through the 2020 tax filing.
• If you received too much, by law, you are not required to return it

the only way you wouldn't get the rebate from what you described is if the IRS uses the 2018 income now and your 2020 income makes you ineligible. 

does that make sense? 

[danleach]

I'm not sure that sounds right. What is the source of you information? If it were based on an estimate of your 2020 income, then if you had higher income you could have to pay back at least some of the stimulus money, which sounds like complicated situation that I don't think the government would want to get into.

[NCperson]

@danleach - please note the last line of my prior comments 

If you received too much, by law, you are not required to return it

you are correct, the government wouldn't want to go there and the CARES ACT mandated no return of stimulus could occur if you were overpaid.

Also, reread my comment again.  It;s not an estimate of 2020, it's the ACTUAL when you file next year! 

here is one article on the topic. 

https://www.businessinsider.com/personal-finance/will-we-have-to-pay-back-stimulus-check-2020-4

and here is the CARES ACT - note is states '2020 tax year' - not 2018 / 2019

SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.

‘‘(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax
imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of—
(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
‘‘(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.

are you a believer now?  🙂