Well, that is a crock. What about people below the federal poverty line who made at least that much, but net taxable income was zero? This is 2020 and you see what is happening to jobs. They are the ones who need it! Filing 2018 if you did not have a tax liability seems like a waste of time.
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If I am reading the draft of the legislation correctly Earned income would include Soc Security and Pension But not unemployment payments.
Also the taxpayer must have earned income at least $2500 or have a tax liability greater than 0.
Basically it is a Advance Tax Credit that is based on 2018 tax return and if 2018 tax return is not filed then 2019 tax return can be used. This leads me to infer that a similar calculation like PTC will be required in the 2020 tax return.
Also the amount $1200 or $2400 (MFJ) reduced by 5 % for income above $75,000 ($150,000 MFJ)
Once media announces the granular details, I am expecting people who never files to start filing at least the 2018 tax return. Also you need a valid Soc Sec #. I did not see ITIN as valid for this purpose.Leave a comment:
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I am still confused after reading that the payment will be based on 2018 tax return. What happens to those that have ss and va pension but are not required to file. I just took in 5 2018 returns. What about these people. anybody heard a time line yet.Leave a comment:
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Coronavirus Aid, Relief, and Economic Security Act CARES Act.
It appears that the $1200 per person is an advance payment similar to the PTC. So for 2020 tax returns there will be a reconciliation calculation required. More work. I tried to cut and paste from the draft legislation but could not.
SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.
“(a) In General.—
In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount
equal to the lesser of
“(1) net income tax liability, or
“(2) $1,200 ($2,400 in the case of a joint return).
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