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?
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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.
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..
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?
always a smart ass that would rather criticize a questioner than just leave it alone ? part of why I seldom come here !
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.
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.”"
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
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.
If it helps, you can watch the Draft Forms go through update, and check the Instructions, such as 1040:
"Economic impact payments—EIP 1 and EIP 2. Any economic impact payments you received are not taxable for federal income tax purposes, but they reduce your recovery rebate credit."
That tells you what is coming for the filing year.
This is dated 12/31/2020.
Thank you . That update of the Form 1040 from December 31 clarified my original question. It does not matter if you received the second stimulus in 2020 or 2021 it will be reconciled in the Tax year 2020 soon. Thank you for your information. I am very sorry my question produced some controversies among some people. But everything is ok. We all learn from each other. Have a great day.
This is the problem with relying on secondary sources, including press releases written by IRS flacks who must stay around during the holidays because they don't have the seniority to take "use or lose" leave. I suggest you rely on primary sources, like the law itself. It's not that difficult to download, and much of it is written in language that a high school student can understand.
‘‘SEC. 6428A. ADDITIONAL 2020 RECOVERY REBATES FOR INDIVIDUALS.
‘‘(a) IN GENERAL.—In addition to the credit allowed under section 6428, 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) $600 ( $1,200 in the case of eligible individuals filing a joint return), plus
‘‘(2) an amount equal to the product of $600 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.
"I suggest you rely on primary sources, like the law itself."
As long as you also rely on the rule-making authority of the agencies, which is how the Bills that become law then get translated into how it hits the ground running for us, the common people. Because if you want to spout off about Law, you have to include Rules.
Okay @BobKamman
Callouts to specific people are provided by the forum functionality, but that doesn't mean you need to use it as a weapon. Your comments regarding the IRS seem over the line: "secondary sources, including press releases written by IRS flacks who must stay around during the holidays because they don't have the seniority to take "use or lose" leave." It's not the first time you've injected personal commentary regarding your perspective of people that have not got the best jobs in the country. That doesn't mean you have to be disrespectful to people trying to do their jobs. Don't get petty.
@qbteachmt "As long as you also rely on the rule-making authority of the agencies, which is how the Bills that become law then get translated into how it hits the ground running for us, the common people."
IRS rule-making authority is currently an issue in some appeals court and Supreme Court cases, so careful practitioners should know when they are not reliable. But please don't change the subject. What we are talking about here are IRS press releases and other anonymous pronouncements. Less than a year later, some have forgotten about how the FAQ's promoted by unauthorized spokespersons turned into Frequently Unreliable Quotes on such topics as EIP's for prison inmates and decedents. There are still those who don't know the law because an IRS error can travel halfway around the world in the time that the truth is putting on its shoes.
"But please don't change the subject. What we are talking about here are IRS press releases and other anonymous pronouncements."
But they are not, by definition, Anonymous. You obviously have some sort of personal axe to grind on this issue.
And you can stop tagging my username because I already see this topic in my list of active topics. Using the Callout function over and over isn't required for "getting my attention" to your reply. I'm already here.
I will tag your name when I am replying to something you wrote, and not to something four other people posted in the same thread, because otherwise they might think I am replying to them.
Even though you obviously have some sort of personal axe to grind on this issue.
"Even though you obviously have some sort of personal axe to grind on this issue."
Yes, I do. Every time you do that, I got Twice the notification. I don't like wading through things in duplicate.
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