Stimulus Payments - I Sure Got The Short End Of The Stick!

[seekingthetruth 1,218]

I will post this here because it has to do with the IRS, income tax and the use of ITIN on taxes.  There are probably a few of you here that file taxes with the ITIN of your spouse, like I do.

 

History

First Stimulus Payment Early 2020 - My family didn't get it because I filed 2019 taxes jointly with my wife and used her ITIN.

Second Stimulus Payment Late 2020 - They changed the ITIN rule and allowed families of the ITIN spouse to get the stimulus.  This ITIN rule was retroactive to the First Stimulus payment, to be received as a tax credit on 2020 taxes.  So, I'm thinking, oh boy, I have some money coming!  First stimulus $1200+500+500=$2200 (2 kids) and second stimulus $600+$600+600 = $1800.

 

 A few days ago, I looked into how the tax credits would work out.  There is an IRS Recovery Rebate Credit Worksheet.  It considers if you already got payments for the first and second stimulus, etc., and comes up with an amount that you can receive as a tax credit on your 2020 return.  Here is where I got the first whammy.  If you are taking any of the stimulus as a tax credit on your 2020 return, they use your 2020 income to determine if you are eligible.  I'm retired and and normally my income is way under the thresholds set that disqualify you from the stimulus.  In 2020, I sold my house in Florida and had a nice capital gain from the 17 years I owned it.  It was a rental at the end, so I had to pay taxes on the gain.  So, my 2020 income is over the stimulus maximum income threshold.  A one time event.  In 2021 my income will be back down to average levels.

 

If I would have got the first stimulus at about the same time everyone else got it in early 2020, it would have used my 2019 income and I would have got it.  I didn't get it due to the ITIN, and now I can't get it due to it being based on 2020 income.

 

Now, here is whammy #2, to rub salt in the wound.  A friend also didn't get the first and second payment.  The reason?  His 2019 income was too high because he was still working at a high income job.  Now he is retired.  So now, he is doing his 2020 taxes, and fills out the Recovery Rebate Credit Worksheet.  I think the IRS flubbed this.  It asks if he got the first stimulus.  No.  No reason has to be given.  Did he get the second stimulus?  No.  Now, to get the 2020 tax credit, they base it on 2020 income.  His 2020 income is low.  So now he gets the first and second stimulus as a 2020 tax credit.  He is married to a Filipina with a SSN, no kids, so he is getting $1200+1200+600+600=$3600, as a credit.  Nice!

 

For the record, my second stimulus payment is "in the mail" to the Philippines.  It was mailed on Jan. 6th, according to the IRS "Get my payment' website.  Wish me luck!

 

My latest income on file with the IRS is low, from 2019.  So, in anticipation of a third stimulus payment, I have to hold off on filing 2020 taxes.  If they approve another stimulus payment soon, it will be based on my 2019 income, and they will mail another check into the black hole that is called the Philippines mail system.

 

Woe is me!  Any stealthy ideas to get me that first stimulus?  At this point, I think my only chance is if they still offer tax credits for missing payments on 2021 tax returns, based on 2021 income, with a placeholder for that first 2020 stimulus.

 

 

[Ayrton 965]

53 minutes ago, seekingthetruth said:

I will post this here because it has to do with the IRS, income tax and the use of ITIN on taxes.  There are probably a few of you here that file taxes with the ITIN of your spouse, like I do.

 

History

First Stimulus Payment Early 2020 - My family didn't get it because I filed 2019 taxes jointly with my wife and used her ITIN.

Second Stimulus Payment Late 2020 - They changed the ITIN rule and allowed families of the ITIN spouse to get the stimulus.  This ITIN rule was retroactive to the First Stimulus payment, to be received as a tax credit on 2020 taxes.  So, I'm thinking, oh boy, I have some money coming!  First stimulus $1200+500+500=$2200 (2 kids) and second stimulus $600+$600+600 = $1800.

 

 A few days ago, I looked into how the tax credits would work out.  There is an IRS Recovery Rebate Credit Worksheet.  It considers if you already got payments for the first and second stimulus, etc., and comes up with an amount that you can receive as a tax credit on your 2020 return.  Here is where I got the first whammy.  If you are taking any of the stimulus as a tax credit on your 2020 return, they use your 2020 income to determine if you are eligible.  I'm retired and and normally my income is way under the thresholds set that disqualify you from the stimulus.  In 2020, I sold my house in Florida and had a nice capital gain from the 17 years I owned it.  It was a rental at the end, so I had to pay taxes on the gain.  So, my 2020 income is over the stimulus maximum income threshold.  A one time event.  In 2021 my income will be back down to average levels.

 

If I would have got the first stimulus at about the same time everyone else got it in early 2020, it would have used my 2019 income and I would have got it.  I didn't get it due to the ITIN, and now I can't get it due to it being based on 2020 income.

 

Now, here is whammy #2, to rub salt in the wound.  A friend also didn't get the first and second payment.  The reason?  His 2019 income was too high because he was still working at a high income job.  Now he is retired.  So now, he is doing his 2020 taxes, and fills out the Recovery Rebate Credit Worksheet.  I think the IRS flubbed this.  It asks if he got the first stimulus.  No.  No reason has to be given.  Did he get the second stimulus?  No.  Now, to get the 2020 tax credit, they base it on 2020 income.  His 2020 income is low.  So now he gets the first and second stimulus as a 2020 tax credit.  He is married to a Filipina with a SSN, no kids, so he is getting $1200+1200+600+600=$3600, as a credit.  Nice!

 

For the record, my second stimulus payment is "in the mail" to the Philippines.  It was mailed on Jan. 6th, according to the IRS "Get my payment' website.  Wish me luck!

 

My latest income on file with the IRS is low, from 2019.  So, in anticipation of a third stimulus payment, I have to hold off on filing 2020 taxes.  If they approve another stimulus payment soon, it will be based on my 2019 income, and they will mail another check into the black hole that is called the Philippines mail system.

 

Woe is me!  Any stealthy ideas to get me that first stimulus?  At this point, I think my only chance is if they still offer tax credits for missing payments on 2021 tax returns, based on 2021 income, with a placeholder for that first 2020 stimulus.

 

 

Unfortunately that's the only way they could've done it since the tax season that year had already started. 

 

For the third stimulus we're also waiting to file until we receive it, since our 2020 income will be over the threshold.

[Listen97 4]

I'm running into the exact opposite issue. I'm filling Joint while under AOS with her old SSN she had when working here a several years ago. Normally I don't think it would be an issue but when I complete the Recovery Rebate section it says I should have received $2400 and $1200 but that of course isn't true as I filed single last year and we got married in August, so I change it to the amount received and it want's to give me the rest as a credit. I'm also unsure if I should now have her filed with me she made 0 income of course since we haven't gotten her work permit yet and while I'd like the extra money don't feel it should actually be owed to us. And at the same time at least since she has been here since March she would be considered a dependent and I could have needed that money.

[Ayrton 965]

55 minutes ago, Listen97 said:

I'm running into the exact opposite issue. I'm filling Joint while under AOS with her old SSN she had when working here a several years ago. Normally I don't think it would be an issue but when I complete the Recovery Rebate section it says I should have received $2400 and $1200 but that of course isn't true as I filed single last year and we got married in August, so I change it to the amount received and it want's to give me the rest as a credit. I'm also unsure if I should now have her filed with me she made 0 income of course since we haven't gotten her work permit yet and while I'd like the extra money don't feel it should actually be owed to us. And at the same time at least since she has been here since March she would be considered a dependent and I could have needed that money.

If you qualify in 2020, you will receive it. Even if you didn't qualify in 2019. So if you were married in 2020, had an income of less than 150k, you will get the full credit (plus kids if applicable)

 

If you already received part of it based on the 2019 taxes, then you will do the math to see how much you still need to receive.

 

For example.

 

2019 you were single and made less than 75k. That means you received 1200 in April and 600 in January.

 

You got married in 2020, had an income of less than 150k and are filing jointly with your spouse that didn't receive any rebate. Since you both qualify in 2020, your credit should be 1200+1200+600+600.

 

Since you already received 1200+600, you're left to receive another 1200+600 as a credit.

 

[Listen97 4]

2 minutes ago, Ayrton said:

If you qualify in 2020, you will receive it. Even if you didn't qualify in 2019. So if you were married in 2020, had an income of less than 150k, you will get the full credit (plus kids if applicable)

 

If you already received part of it based on the 2019 taxes, then you will do the math to see how much you still need to receive.

 

For example.

 

2019 you were single and made less than 75k. That means you received 1200 in April and 600 in January.

 

You got married in 2020, had an income of less than 150k and are filing jointly with your spouse that didn't receive any rebate. Since you both qualify in 2020, your credit should be 1200+1200+600+600.

 

Since you already received 1200+600, you're left to receive another 1200+600 as a credit.

 

Thanks TurboTax is saying I would just seemed odd.

[seekingthetruth 1,218]

1 hour ago, Listen97 said:

Thanks TurboTax is saying I would just seemed odd.

Yes, you have a similar situation as my friend that I described above in Whammy #2!  Enjoy while you can!  They will find out a way to get it back in other ways!  😁

 

2 hours ago, Listen97 said:

I'm also unsure if I should now have her filed with me she made 0 income

Absolutely you should file jointly!  My wife has had almost 0 income for the past 5 years that we filed jointly, but her living expenses are real, and mine.  No reason to feel guilty about it.