Stimulus payment going to empower instead of individual when using Turbotax?

[csutcliffe1]

Is it true that if you use TurboTax, your covid stimulus payment may be going to your employer instead of directly to you? (I am eligible for my stimulus check to be used as a 2020 tax deduction, but since I am sending my tax information to my employer to be paid, this means they will get the deduction and not me). How do I avoid this, so that I actually get my $1,800? Thank you in advance! 

[DoninGA]

The stimulus payment for which you are eligible to receive will be entered on your 2020 federal tax return as a tax credit on Form 1040 Line 30.  It will be included in any federal tax refund you will be receiving.

The TurboTax program will ask about stimulus payments in the Federal Review section of the program.

[csutcliffe1]

Sorry, can you please answer the question? *If* I am sending my final tax information to my (foreign) employer to pay, will they get they receive the $1,800 stimulus benefits that was deducted from my tax return? How do I avoid this? Thank you in advance.

[DoninGA]

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@csutcliffe1 wrote:

Sorry, can you please answer the question? *If* I am sending my final tax information to my (foreign) employer to pay, will they get they receive the $1,800 stimulus benefits that was deducted from my tax return? How do I avoid this? Thank you in advance.

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What do you mean you are sending your tax information to your employer?

Are not You completing Your tax return?  What does the employer have to do with your US Federal Tax Return?

[csutcliffe1]

I was not paid a gross salary by my foreign employer (my tax was accrued). So, I must send my tax info to my foreign employer to process. They will then pay the total amount to the US tax authority-- I'm sure that many ex-pats who returned to the US will have this issue as well for 2020. However, I assume that my employer will then get my covid stimulus deduction. I would like to know what my options are. Is there a way that Turbotax can help?

[DoninGA]

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@csutcliffe1 wrote:

I was not paid a gross salary by my foreign employer (my tax was accrued). So, I must send my tax info to my foreign employer to process. They will then pay the total amount to the US tax authority-- I'm sure that many ex-pats who returned to the US will have this issue as well for 2020. However, I assume that my employer will then get my covid stimulus deduction. I would like to know what my options are. Is there a way that Turbotax can help?

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I am going to ask for assistance with this situation.  @pk Can you help with this issue?

[DoninGA]

However, regarding the stimulus payment -

IF you are eligible and have Not received any stimulus payment in 2020 or 2021, it can only be entered on a 2020 US Federal tax return that you have to Sign and file.  It is entered as a tax credit on Form 1040 Line 30.  The tax credit is included in the federal tax refund that is sent to you.  Either to the address on your federal tax return, Form 1040, or if you have a US bank account with a US bank located in the US, by direct deposit to your bank account.

[Hal_Al]

Q. Is there a way that TurboTax can help?

A. No.  You need to discuss the mechanics with your employer. The stimulus, if not already received by you, will complicate the normal process.

“They will then pay the total amount to the US tax authority.”

That implies that your employer will remit a tax payment prior to the stimulus being applied as a tax credit and the stimulus will be part of your refund.  But that would require your employer revising your tax return. On the other hand, if stimulus will have already been applied, as a tax credit, to reduce the tax liability that your employer sends to the IRS, then you’re correct, they will get effectively your stimulus.

[Critter-3]

Ok ... I think you are confused ... did you not get the credit in advance ?   So you applied for the credit on the return ?  If so then the credit on the return is used to first pay off any taxes on the return and then if there is anything left over it is refunded to you ... none of this goes to an employer at anytime.

Now if there is an understanding with your employer where they  will pay the taxes you owe on the return  then you need to ask them if that is before any payments or credits happen on the return. I assume you normally don't have any payments/refundable credits on a return  however this is not a normal tax year in any way.  This is a discussion you need to have with them not us on this forum. 

[AmeliesUncle]

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@csutcliffe1 wrote:

I was not paid a gross salary by my foreign employer (my tax was accrued). So, I must send my tax info to my foreign employer to process. They will then pay the total amount to the US tax authority-- I'm sure that many ex-pats who returned to the US will have this issue as well for 2020. However, I assume that my employer will then get my covid stimulus deduction. I would like to know what my options are. Is there a way that Turbotax can help?

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If your foreign employer is volunteering to pay your US taxes, then you need to ask your employer about how they are going to handle that.  It has nothing to do with the US tax system or the IRS; it is solely dependent on what your employer is doing.

[pk]

@csutcliffe1  having read through all of the above and generally agreeing with the points being  made, I fist have a question --- are you an expat i.e. working at a foreign site of a US owned local entity.   In my days as an expat working in the UK, my local employer  did my taxes  and paid my local taxes  and these were reported as part of my world income for US purposes.  They worked a "Hypo-Tax" to make sure I pay my share.   Is this  your situation?   If you working abroad , are you sure that you qualify for the Eco. Stimulus Credit ( advance or otherwise ) -- granted it is based on AGI i.e. after foreign earned income exclusion.