I last filed in 2018 via Turbo Tax, since then I've been battling health issues and haven't worked.
Most everyone i know with Bank of America has gotten the 2nd stimulus except us, but this is probably a moot point now anyways.. (of course there's also being patient, but pretty sure I shouldn't expect a check automatically now anyways) Here's why...
So i did not file in 2019 as I did not make money, they must have used my 2018 taxes for 1st stimulus payment-the last year i filed taxes.
I DID receive first Economic impact payment via direct deposit.
But I did NOT use the non filer tool that was due in Nov. ( i didn't realize i needed to)
I do not have income to report, so i wasn't going to file this year.
My goal is to get stimulus as soon as possible, but...
Two different news sources report differing opinions on the 2018 tax issue.:
To get my stimulus must i now file this year because now IRS is using only 2019 taxes for Stimulus instead of last year when they were able to use my 2018 taxes?
Which is accurate?
Does anyone know if IRS is auto depositing for people who only filed in 2018? And that did not use non filer tool?
Below are my examples of conflicting rules
#1
#2
@Renquist188 - well that is where it gets complicated.... the payments were really an 'advance against 2020 taxes'. So what the IRS did was make an estimate of what you were due based on the filing and income rules. for the 1st stimulus, they used either 2018 or 2019 tax return, whatever was available. For the 2nd payment they only used 2019. But what is really occurring is they are calculating what you are due based on your 2020 numbers on your 2020 tax return and then subtracting what you already received, and it can't go below zero, the rest is a refund to you.
Think about the family that had a baby in 2020 - like you did! - there would have been nothing in 2018 or 2019 on their tax returns. But even a child born this past Wednesday (Dec 31) gets their parents a tax credit of $500 and $600 on their 2020 tax return- because everything is really based on the 2020 numbers!!!
or the person that had BIG income in 2018 and 2019, but was unemployed in 2020. They may not have received any stimulus for the 1st two payments because of their income was too high. But since everything is really based on 2020, they would be able to collect the stimulus on this year's tax return as their income is now low and everything is really based on 2020.
does that help?
<<Just file in 2021 for year 2020?>> YES!!!
<<And getting taxes done earlier than later will have no bearing on when i might recieve any owed stimulus? >> CORRECT.
Infact all PAYMENTS will be stopped by the IRS on January 15th (by law) so there is no confusion whether you should be waiting on the payment or just filing for it through the 2020 tax return. The tax return window opens in late January so it looks like the IRS is giving it two weeks to let 'checks in the mail' flush out.
My only caveat is that you don't want to do it too early and find out that the turbo tax software wasn't updated to accommodate the 2nd stimulus. They have until the end of January to update the software and the IRS just released the requirements on Wednesday, so hopefully it'll be done by Jan 27.
<<What is your guess as to when i could possibly receive stimulus #2 if owed,using tax return??
it's just going to be part of your refund as part of your 2020 tax return. If you file and request Direct Deposit, it normally is refunded to you within a few weeks, but if you get a child tax credit or Earned income credit, the IRS can't release the refund until mid-Feb
https://www.irs.gov/individuals/refund-timing
for the prior AGI, use zero, see if that works
does that help?
If you do not get the stimulus check automatically and do not need to file for 2019 or 2020, then you can do a non-filer's return. I do believe that you will get it automatically.
If you don't see it by January 15, the file a non-filer's return.
https://www.irs.gov/newsroom/irs-tool-to-help-non-filers-get-economic-impact-payments
@MissMCJ -as noted on another post, this advice is incorrect!
Thank you so very much for a response.
I'd really, simply like to nail down what the rule exactly is though... Make sense?
By this I mean, it must be one way or the other, correct?
Meaning, filed in 2018,didnt file in 2019, the rule is XYZ.
I do understand needing to wait for direct deposit IF I should receive it automatically..
And also understand needing to file if I don't receive it.
But what exactly is the rule?
Maybe I'd prefer to file asap vs wait 15 days on the off chance I do get lucky??
Or if anyone in the community w/same situation can verify if they received or not.
I hope my question makes sense here, im not the best with my English!
And also about the tool you mention
@Renquist188 -here is the rule:
in order to get the stimulus payments at this point in the game, you must file a 2020 tax return. There is no other way.
as far as 2018 and 2019 go, if you owe money, you owe. There is no statute of limitations on your obligation to pay to the IRS - and they will add on fees and penalties to whatever is owed.
but if you are due a refund, then for 2018, you must file by April 15, 2022 otherwise you give up the rights to the refund. For 2019, you just file by April 15, 2023 otherwise you give up the rights to the refund.
Those are the rules.
Thanks NC person.
So if not accurate what is?
And could you at least point me to the thread/discussion you are referring to???
this is written about half way through the link above:
Yes, if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit
when you file your 2020 federal income tax return
FYI I did file for 2018. Then haven't worked since because of cancer, I owe nothing, not concerned about owing.
But you can 100% confirm that folks that recieved 1st stimulus based on 2018 taxes,that did nothing, and didn't use non filers, yet still received 1st stimulus,
100% will NOT receive automatic deposit, and ONLY when filing new taxes NOW, will 2018 filers RECIEVE even a penny automatically, correct?
I think we need to understand whether you even NEED to file a 2019 tax return to report 2019 income. If you did not have nay taxable income to report for 2019 then mailing in a 2019 return will be pointless in regard to getting the 2020 2nd stimulus. A 2019 return can only be filed by mail and it is taking the IRS months to process mailed returns. A 2019 mailed return would not yield a 2nd stimulus for you.
Do you have taxable income to enter on a 2020 return? If so, you still cannot file a 2020 return "asap" because the IRS is not accepting 2020 returns until the end of January. But....the 2020 return is the one with the recovery rebate credit. That is where you can get the 2nd stimulus if you do not receive it automatically within the next couple of weeks.
A 2020 return can be e-filed, so it will be processed sooner than a mailed 2019 return. The stimulus money is an advance on a credit that is available on your 2020 return. They just used 2018 and 2019 returns to get the money out in a hurry during the pandemic.
Right now the IRS and the software programmers are burning the midnight oil to revise the 2020 Form 1040 and all the tax prep software for the 2nd stimulus. So you need to wait until that process is complete and the software is ready--file a 2020 return later---like sometime in February. Wait for it all to be ready. By then you will know if a 2nd stimulus is somehow going to appear in your mailbox----but it probably will not.
My "standard" reply to the recovery rebate credit:
The stimulus check is an advance on a credit you can receive on your 2020 tax return. If something went wrong or you did not get the stimulus check this year, you can get it when you file your 2020 return in early 2021—if you are eligible.It will end up on line 30 of your 2020 Form 1040.
https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/00/1393859
We know that the IRS is already revising the 2020 Form 1040 to include the 2nd stimulus, but that change will entail a lot of re-programing at the IRS and for the tax software programs. It may be at least a month — or longer— before the forms are changed. Do NOT be in a hurry to file your 2020 tax return until more is known. Give some extra time to the IRS and the software programmers so that the software can handle the new 2nd stimulus, so that you can get it all by filing ONE time. It is never a good idea to file too early; filing your 2020 return too soon may result in a lot of extra confusion that can be avoided if you wait and file a little later.
@Renquist188 - look at my prior post - I gave it to you directly from the IRS - better to trust them than to trust me, right? You know who they are, but you don't know who I am. look what it says:
"Yes, if you meet the eligibility requirement.
While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return."
On the 2020 tax return, Turbo Tax will calculate the stimulus owed to you, which is based on your income and filing status, from that they subtract what you were already paid (in your case zero) and that result is the Recovery Rebate Credit referenced in the IRS link above that I quoted. You will receive that as part of your refund for your 2020 tax return.
Great points.
I Have no taxable income for 2019 or 2020.we also had another child in 2020.
Yes good point, why file for 2019?
But rules I read said 2nd stimulus is based fully on 2019 taxes (and this is the point where my brain confuses myself because I don't know if this (2019 taxes) means filing 2019 for 2018,or in 2020 for 2019. Im guessing the latter..
@Renquist188 - well that is where it gets complicated.... the payments were really an 'advance against 2020 taxes'. So what the IRS did was make an estimate of what you were due based on the filing and income rules. for the 1st stimulus, they used either 2018 or 2019 tax return, whatever was available. For the 2nd payment they only used 2019. But what is really occurring is they are calculating what you are due based on your 2020 numbers on your 2020 tax return and then subtracting what you already received, and it can't go below zero, the rest is a refund to you.
Think about the family that had a baby in 2020 - like you did! - there would have been nothing in 2018 or 2019 on their tax returns. But even a child born this past Wednesday (Dec 31) gets their parents a tax credit of $500 and $600 on their 2020 tax return- because everything is really based on the 2020 numbers!!!
or the person that had BIG income in 2018 and 2019, but was unemployed in 2020. They may not have received any stimulus for the 1st two payments because of their income was too high. But since everything is really based on 2020, they would be able to collect the stimulus on this year's tax return as their income is now low and everything is really based on 2020.
does that help?
it really doesn't matter - look at my last post.... everything is based on 2020 filinf status, dependents and income level - once you go through the Turbo Tax interview process, it will become clearer. The only way to get stimulus money you are missing is to file a 2020 tax return- and that newborn will be worth $1100 to your family! .
Ok it finally sunk in most of the layers of my thick head.
So with that being said what now?
Just file in 2021 for year 2020?
And getting taxes done earlier than later will have no bearing on when i might recieve any owed stimulus? What is your guess as to when i could possibly receive stimulus #2 if owed,using tax return?
Also I don't know what to do about my AGI (for online transfer key password thing) since I haven't filed in a few years?
And please forgive me what do you mean by interview process? I always pay the 50 or 80 bucks for TurboTax every year and do it myself. Must I now meet with someone? I don't understand?
<<Just file in 2021 for year 2020?>> YES!!!
<<And getting taxes done earlier than later will have no bearing on when i might recieve any owed stimulus? >> CORRECT.
Infact all PAYMENTS will be stopped by the IRS on January 15th (by law) so there is no confusion whether you should be waiting on the payment or just filing for it through the 2020 tax return. The tax return window opens in late January so it looks like the IRS is giving it two weeks to let 'checks in the mail' flush out.
My only caveat is that you don't want to do it too early and find out that the turbo tax software wasn't updated to accommodate the 2nd stimulus. They have until the end of January to update the software and the IRS just released the requirements on Wednesday, so hopefully it'll be done by Jan 27.
<<What is your guess as to when i could possibly receive stimulus #2 if owed,using tax return??
it's just going to be part of your refund as part of your 2020 tax return. If you file and request Direct Deposit, it normally is refunded to you within a few weeks, but if you get a child tax credit or Earned income credit, the IRS can't release the refund until mid-Feb
https://www.irs.gov/individuals/refund-timing
for the prior AGI, use zero, see if that works
does that help?
Thank you yes it all does help. But the way you mention just trying out zero, a little scary?
Can't terrible things happen if you put the wrong AGI?
And yes FYI I'm going to mark your answer as best
"interview" is just referring to the question and answer process you go through in the software ---nothing to do with meeting with anyone.
Instead of paying so much for the software, if you wait until mid-January you can use Free File--it becomes available then.
If you qualify to use it, there is another full-featured free version of the software:
Try Free File:
You qualify if your income was $39,000 or less, or $72,000 or less if active duty military, or if you qualify for Earned Income Credit
https://ttlc.intuit.com/questions/1900583-what-is-turbotax-free-file-program
And.....I would like to say this----you are getting good advice from user @NCperson
Thank you very, very much. Most grateful for everyone's wisdom here.
@Renquist188 Just to reinforce what @NCperson said, it is fine to use "zero" as the 2019 AGI in order to e-file 2020. That is the standard little software workaround to use to e-file when you do not have a 2019 AGI in the IRS system. We suggest that all the time.
I am bowing out now--you are in good hands with NCperson.
When you file with TurboTax there is an option to reply that you did not file taxes last year. If you check that box, it will not ask you for your AGI.
One final couple of questions and I'd really enjoy hearing from xmasbaby0 as well here if possible.
Apologies for the longwindedness here, must have been all the Komodo Dragon for breakfast!
The IRS won't accept returns until late January; TT doesn't set that date. Personally, I suspect TT will have the software updated as it affects EVERYONE
if your income is zero, there is no EIC or CTC to be had in any event.
You don't need the form; I suspect most threw it out, not realizing what it was. you just need to know how much stimulus you received each time.
no, other than do you really have zero income????? you will have to amend if you do and it could be worth a lot in refund because of CTC and qualifying tax credit.
Visit the IRS at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
to find truly free filing with various tax software outfits.
If you choose TurboTax, you must create a new account.
If you sign in with your existing account, you'll be back in the same place -- not free -- you're trying to escape.
If you did not file a 2019 return the AGI when asked will be zero.
and the interview process just means completing the return using a DIY program of any kind. In my opinion I would wait for the IRS free online system which will open somewhere mid-January. Just go to www.irs.gov and click on file for free and follow the on-screen directions.