Level 7

Question

Second Stimulus Check

Forum|Forum|5 years ago
January 2, 2021
16 replies
30 views

Hi dear colleagues,

For the second stimulus check of $600 , if somebody receives the money in January, my question is: Do they have to report it for reconciliation in the tax year 2020 or 2021? For example I just check the software and they have not updated the Line 30. I believe for example that for a single person, assuming he or she has no income problem, should have received 1200 for the first stimulus check and 600 for the second, but it seems that in total it will be 1800 received but they software it is calculating so far based on 1200. Am I right? What amount do you suppose to input 1200 or 1800 assuming he received the 600 in 2021? I am referring to the tax year 2020?

ProSeries Basic

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BobKamman

Level 15

Why are you even an Intuit customer if you expect them to update software in a shortened holiday week, when the ink hasn't dried on the bill signed Sunday night and the returns can't be filed at least for another month? Chinese food is popular this time of year, but make sure you don't order the Peking Duck. It will take way too long to roast, for someone with your expectations.

Jon-L

Level 4

always a smart ass that would rather criticize a questioner than just leave it alone ? part of why I seldom come here !

George4Tacks

Level 15

We will likely just wait to see. I am sure that there will be another reconciliation on the 2021 return. I know my "new" $600 is sitting as a pending transaction that will post on the next banking day of 1/4/2021. I am sure some slipped in on 12/31/2020, so there will need to be some modification of the 1040 for 2020. Don't hold your breath. It is unhealthy even without a pandemic..

Answers are easy. Questions are hard!

BobKamman

Level 15

@George4Tacks

A credit against 2020 tax is a credit against 2020 tax regardless of year paid. Don't you have any clients who won't be making their last 2020 quarterly payment until January 15, 2021?

Just-Lisa-Now-

Intuit Community Champion

I saw somewhere that theyre going to stop sending that new round of EIP out as of Jan 15th....after that you'll know what they got or didnt get and be able to fill in the software accordingly.

I wouldnt expect the software to be ready for this until sometime after the 15th of January.

IRS wont be accepting returns until the end of January so there's plenty of time for everything to fall into place.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

qbteachmt

Level 15

The second payment is a 2021 payment.

Start with the IRS: "...said IRS Commissioner Chuck Rettig. “We are working swiftly to distribute this second round of payments as quickly as possible. This work continues throughout the holidays and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes.”"

From: https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payments-to-millions-of-americans

It helps to sign up for e-newsletters, and then you get this stuff directly to your inbox and timely. This one came in 2 days ago:

e-News for Tax Professionals 2020-53

Don't yell at us; we're volunteers

qbteachmt

Level 15

@qbteachmt

Rettig is obviously referring to 2020 returns that will be filed in 2021. As the same newsletter states,

"Eligible individuals who did not receive an Economic Impact Payment this year -- either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021."

It helps to read the complete newsletter and not just the misleading quote that someone inserted in the Commissar's mouth.

"Rettig is obviously referring to 2020 returns that will be filed in 2021."

As you know, these are two different bills. There are two payments being discussed. The qualifications would be examined separately, as well.

"It helps to read the complete newsletter and not just the misleading quote that someone inserted in the Commissar's mouth."

I didn't misquote anyone. As for who is the "someone" who "inserted", I copied that from the IRS, as I noted. And I posted the link so that the viewer can read the complete newsletter, and could have read it two days earlier than asking today. You sign up to be informed.

If it helps, I will even break it down: "Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of Americans who received the first round of payments earlier this year."

"before the official payment date of January 4, 2021."

"The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it."

This Announcement is "IR-2020-280, December 29, 2020" which makes "this year" 2020.

Many people will not get their funds until they file the 2020 tax return, which makes the payment a 2021 payment, along with the rest that get their payment right away, but still as part of 2021.

And there is not yet any declaration that the "remaining balance" or what would then be a Third Payment, is dead or alive.

You don't accuse people of misleading, when clearly, the source that was pointed out is the agency in charge of releasing the info to the public. I'm glad to be a resource to those who cannot be bothered to find it themselves, and I include where I sourced the info for a reason.

This is a developing story. We're all along for the ride.

Don't yell at us; we're volunteers

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