Coronavirus Aid, Relief, and Economic Security Act CARES Act.

[TaxGuyBill]

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.

[Burke]

If that is correct, there are one or two cases where delaying filing 2019 would be an advantage to my remaining clients.

[TaxGuyBill]

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.

[BOB W]

https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Application-3-30-2020-v3.pdf