Stimulus Check AGI | Ed Slott and Company, LLC

Stimulus Check AGI

I have read many conflicting articles about AGI used to determine $1,200 stimulus checks per individual.

I‘m of the understandIng that a person’s 2018 or 2019 tax return(most recent filed) AGI will be used to determine eligibility but 2020 AGI will be the actual income number used to determine if one can keep, pay all or some back. If 2019 AGI above limit and 2020 below then funds will be provided when 2020 taxes are filed.

I hear of games being played Such as 2019 tax return not being filed to allow 2018 to be used. This may be all irrelevant if 2020 AGI will be final determiner.

Any information would be appreciated.

  • 2020 AGI will only be the final determiner if you get less than your full rebate next month. Whatever is paid next month is just a deposit toward your actual rebate, but if your 2020 return generates a lower rebate than your deposit, the IRS will NOT ask for any of the deposit back.
  • Say your most recent 2018 or 2019 return generates a rebate of 1000 next month. You still have another 200 potential rebate paid a year from now if your 2020 return indicates a full rebate. You would get the difference of 200 next spring.
  • But if you rebate next month is 1000, and your 2020 return indicates that you do not get any rebate for 2020, they will not ask for that 1000 back. 
  • In effect, you get two different chances for the same maximum rebate.

Thanks for the clairification as always!!! So the game to hold back 2019 tax returns when AGI is higher than 2018 has merit. Frankly thought 2020 AGI would play a bigger role to help those who actually need could show this by 2020 AGI not wages from 2 years ago. 

Yes, the determination would then be based on the 2018 AGI, and generate a higher rebate or partial rebate. Then if 2020 AGI is lower than 2018, they would get the remaining amount of the max rebate in 2021. If 2019 income was used because the return was filed prior to the determination date (probably in May), then the current rebate would be smaller, and the 2021 rebate potentially larger. 

 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.