3 ms·

Yeah... $1,200 advanced from next years tax return nonetheless. Normative economics (how should things be allocated equitably) are frowned upon, but it’s clear

Yeah... $1,200 advanced from next years tax return nonetheless. Normative economics (how should things be allocated equitably) are frowned upon, but it’s clear that our system needs to be refactored. The fact that Bernie Sanders has only a 1% chance of winning the primaries show the severe disconnect between what we want and what we need.

anoonmoose 7y ago
I have heard people say that it was an advance but found conflicting info, can you source?
- enraged_camel 7y ago
  It is misinformation. It becomes an advance if your normal income suddenly skyrockets to a point where you wouldn’t have been eligible for the $1,200. That won’t be the case for almost anybody.
  - treyfitty 7y ago
    You have it backwards. If and only if your income sky rockets, you don’t get it taken out next year. If your income is high now and you don’t get $1,200, you’ll get it when you pay next year under the condition your income drops. For everyone else, it’s a simple advance. > For example, a single taxpayer with $100,000 in 2019 income would not receive an advance rebate but would receive the $1,200 credit on their 2020 return if their income for the year fell below the phaseout. On the other hand, a single taxpayer with $35,000 in income receives a $1,200 advance rebate but would not have to pay the rebate back on the 2020 return if they make $100,000 this year. https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/ https://taxfoundation.org/cares-act-senate-coronavirus-bill-...
- prpl 7y ago
  It is free money, which is technically a tax credit for the 2020 tax year. Since that would not be filed for another year, they advanced the issue date based on previous tax returns. If you made $150k last year as a single person but just lost your job and end up out of work for 6 months, you won’t see your credit until you do your taxes next year. It is not an advance on your normal tax return.
  - anoonmoose 7y ago
    Source?
    - prpl 7y ago
      https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/ https://www.washingtonpost.com/graphics/business/coronavirus...
- treyfitty 7y ago
  > These rebates are structured as tax credits automatically advanced to households in 2020 if you filed a 2019 income tax return and would be received as a direct deposit or check by mail. https://lacyclay.house.gov/media-center/press-releases/congressman-clay-explains-cares-act-rebate https://lacyclay.house.gov/media-center/press-releases/congr...
  - 0xffff2 7y ago
    Note for anyone who's not aware, a "tax credit" is basically free money. It's not the same as a deduction, which only reduces your taxable income. A credit directly reduces the amount of taxes you owe, and in most cases if the credit reduces the amount you owe to a negative number the IRS will pay you that money.

anoonmoose 7y ago

I have heard people say that it was an advance but found conflicting info, can you source?

enraged_camel 7y ago
It is misinformation. It becomes an advance if your normal income suddenly skyrockets to a point where you wouldn’t have been eligible for the $1,200. That won’t be the case for almost anybody.
- treyfitty 7y ago
  You have it backwards. If and only if your income sky rockets, you don’t get it taken out next year. If your income is high now and you don’t get $1,200, you’ll get it when you pay next year under the condition your income drops. For everyone else, it’s a simple advance. > For example, a single taxpayer with $100,000 in 2019 income would not receive an advance rebate but would receive the $1,200 credit on their 2020 return if their income for the year fell below the phaseout. On the other hand, a single taxpayer with $35,000 in income receives a $1,200 advance rebate but would not have to pay the rebate back on the 2020 return if they make $100,000 this year. https://taxfoundation.org/cares-act-senate-coronavirus-bill-economic-relief-plan/ https://taxfoundation.org/cares-act-senate-coronavirus-bill-...
prpl 7y ago
It is free money, which is technically a tax credit for the 2020 tax year. Since that would not be filed for another year, they advanced the issue date based on previous tax returns. If you made $150k last year as a single person but just lost your job and end up out of work for 6 months, you won’t see your credit until you do your taxes next year. It is not an advance on your normal tax return.
- anoonmoose 7y ago
  Source?
  - prpl 7y ago
    https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/ https://www.washingtonpost.com/graphics/business/coronavirus...
treyfitty 7y ago
> These rebates are structured as tax credits automatically advanced to households in 2020 if you filed a 2019 income tax return and would be received as a direct deposit or check by mail. https://lacyclay.house.gov/media-center/press-releases/congressman-clay-explains-cares-act-rebate https://lacyclay.house.gov/media-center/press-releases/congr...
- 0xffff2 7y ago
  Note for anyone who's not aware, a "tax credit" is basically free money. It's not the same as a deduction, which only reduces your taxable income. A credit directly reduces the amount of taxes you owe, and in most cases if the credit reduces the amount you owe to a negative number the IRS will pay you that money.