Question

Has anyone found anything on how they will handle the following situation for the stimulus checks? I would qualify for a phased out amount based on 2018 tax return, but I will not based on my 2019 or 2020 tax return. I have NOT filed my 2019 tax return yet, thus they should be calculating it off my 2018 return. The stimulus check is technically a pre-payment of a tax credit that will be available on our 2020 tax returns. So I have confirmed the following: 1)If you don't qualify based on your 2019 return, but you do qualify in 2020 (your income decreased this year) you'll get it when you file your 2020 tax return next year. 2)If you do qualify in 2019, but you don't qualify in 2020 because your pay went up they will not make you pay it back as part of your 2020 tax return. But I haven't been able to find anything as to if they would make you pay it back on your 2020 return if they sent it to you based on your 2018 return. I wouldn't want to be blindsided by a $1K tax liability next year. Any sources anyone has found on the topic would be appreciated. Thanks!  

Answer 1

I believe they would make you pay it back. Seems like I read that somewhere. I'll see if I can find the link.  

Comments

@xanthic I initially thought they would make you pay it back too — which is fine it’s still a nice interest free loan for a short period, but then when I read they wouldn’t make you pay it back if you qualified in 2019 but didn’t in 2020. So that left me wondering how they’d handle it if they paid it out based on 2018. Either way I’m definitely holding out on filing my 2019 now as long as possible. thanks for sharing the links below I’ll take a look at them!  

Answer 2

Hmm one article makes it sound as if you keep it and are effectively penalized if you've filed 2019

Answer 3

The way Im reading it, delaying filing if you can manage it would mean you'd get a higher stimulus and not have to pay it back.  

Answer 4

That one makes it seem less certain.  

Comments

@xanthic I think that one confirms most likely no repayment. Thanks for sending these!  

Answer 5

There is no repayment.  

Answer 6

No repayment would be due. However if you were in the situation where you’re 2018 was much higher than 2019 and you did not qualify for a stimulus payment, you could get a higher refund when filing.