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04-02-2020, 03:31 PM | #1 |
I hear them call the tide
Join Date: Dec 2005
Location: Perpetual Chaos
Posts: 30,852
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USA Stimulus Payments/Filing Taxes, opinion, please
Dearest Dwellars, I would appreciate your opinions, please on my initial musings of the stimulus situation for adult students...... (will not be construed as advice). Currently, they will not be eligible for the stimulus payment if they were claimed as dependents on their family's 2018 tax return.
It seems to me that if a college student were to file their 2019 taxes independently now (and their family not claim them as dependents), they would be eligible for the $1,200 stimulus. If the family is not eligible for tuition credit on behalf of that student, this would make no financial difference to a family using the standard deduction re the federal return* But on the Michigan return, one would pay an extra $187 tax (by losing a $4,400 allowance * 4.25% tax). So overall, it makes sense for those students who have not already filed and don't make their family qualify for tuition credit to file immediately as independents...... Do you think my idle musings here are way off base? Is there a cut off for 2019 taxes to be filed so they will be used instead of 2018 taxes that I've missed or anything like that? Am I overlooking something glaringly obvious? I would appreciate it if you did not use this as an opportunity for political commentary . * Qualifying Widower being the exception because you need at least one dependent.... This is from one of the many articles I read (Forbes) "According to the new law, the IRS is going to look first to your 2019 tax return to compute the payment. If no 2019 return has been filed, however, the IRS will grab your 2018 return instead. (If you receive Social Security and don’t need to file a return, the IRS will send you a payment based on your Form 1099-SSA). This, of course, presents opportunity. An individual who has not yet prepared his or her 2019 return should take into account the relevant variables — adjusted gross income, marital status, number of children — and determine which year would yield the bigger payment. If it’s 2019, then you’d better hurry up and file; if it’s 2018, then hold that 2019 return back until you receive your payment." https://www.forbes.com/sites/anthony.../#459e4b44b9dc THANK YOU!
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The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart |
04-02-2020, 03:56 PM | #2 |
I love it when a plan comes together.
Join Date: Oct 2009
Posts: 9,793
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Whatever year they use for filing, there needs to be current direct deposit information with it. If direct deposit wasn't used; or, the information has changed since 2018, it's better to file 2019 returns now and include it.
Many Americans may have to wait months for coronavirus relief checks |
04-02-2020, 05:50 PM | #3 |
I hear them call the tide
Join Date: Dec 2005
Location: Perpetual Chaos
Posts: 30,852
|
Thanks, yes we're good on that aspect, fortunately
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The most difficult thing is the decision to act, the rest is merely tenacity Amelia Earhart |
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