Gov. Checks

[gc70]

What specific tax credit are you referring to? I’ve had all kinds of tax credits over the years, but they were specific to kids, and such. Meaning, not everyone gets them depending on their individual situation.

CARES Act
page 55

‘‘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 sum of —
‘‘(1) $1,200 ($2,400 in the case of eligible individuals filing a joint return), plus
‘‘(2) an amount equal to the product of $500 multiplied by the number of qualifying children (within the meaning of section 24(c)) of the taxpayer.

page 56

‘‘(f) ADVANCE REFUNDS AND CREDITS. —
‘‘(1) IN GENERAL. — Subject to paragraph (5), each individual who was an eligible individual for such individual’s first taxable year beginning in 2019 shall be treated as having made a payment against the tax imposed by chapter 1 for such taxable year in an amount equal to the advance refund amount for such taxable year.
‘‘(2) ADVANCE REFUND AMOUNT. — For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year.

Basically, the government sends you an Advanced Refund now and when you file your next tax return you get to claim a Credit which you immediately offset with the amount of the Advanced Refund you previously received.

 

[fieldgrade]

CARES Act
page 55

page 56

Basically, the government sends you an Advanced Refund now and when you file your next tax return you get to claim a Credit which you immediately offset with the amount of the Advanced Refund you previously received.

So it’s a refundable tax credit that we just get in advance? I mean I understand the part about them sending us money now, and how much, but the tax credit discussion on the 2020 1040 lost me momentarily.

 

[gc70]

So it’s a refundable tax credit that we just get in advance? I mean I understand the part about them sending us money now, and how much, but the tax credit discussion on the 2020 1040 lost me momentarily.

That is the way I read it. It also fits perfectly with the CPA's description (I am definitely not a CPA).

From a CPA: "Taxpayers will reduce the amount of the credit available on their 2020 tax return by the amount of the advance refund payment they receive."

 

[grungewehr39]

So, I'm sure in this time of dire emergency, our "leaders" are taking a pay cut or going without. Right? I know, and I am sure of this, a certain govt Richard will be inserted in a particular orifice come next year. I already know the amount of LAZY that this will produce.

 

[RetiredUSNChief]

Well, not being a CPA myself and not having slept at a Holiday Inn Express last night, what I gather is that the payment is an advance. One gets something now, in advance (if eligible), but that amount is deducted from what one claims as a credit in tax year 2020.

To be honest, I'd rather the money go into subsidizing milk; OJ, frozen food; and ammo TP delivery.

Good to know. I'll be better prepared in the future knowing this, because I've got my taxes set up to where I owe each year.