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  • TaxGuyBill
    Senior Member
    • Oct 2013
    • 2320
    #46
    Originally posted by Burke
    If on the 2020 return, they find they did not qualify when it is reconciled -- it will be added back to their tax liability

    No. While it is possible to receive MORE of the refundable credit on the 2020 tax return , but there is NO 'payback' if the actual credit is less than what they received.

      Comment

      • Burke
        Senior Member
        • Jan 2008
        • 7068
        #47
        If that is correct, there are one or two cases where delaying filing 2019 would be an advantage to my remaining clients.

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          • TaxGuyBill
            Senior Member
            • Oct 2013
            • 2320
            #48
            Yep, in a few cases it would be good to wait.


            Here is the legal gibberish:

            The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (f).


            Translation: The credit is calculated on the tax return, will be reduced by the Advance payment/stimulus, "but not below zero". So the "not below zero" means there is no payback.

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              • BOB W
                Senior Member
                • Jun 2005
                • 4061
                #49
                https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf
                This post is for discussion purposes only and should be verified with other sources before actual use.

                Many times I post additional info on the post, Click on "message board" for updated content.

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