$1200 stimulus to drop into my account 01/04/21

[Broken Man 1999]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

[IowaFarmWife]

That is very generous of you!

[runner3081]

Very kind of you!

Ours will be be invested, post-tax.

[Broken Man 1999]

That is very generous of you!

We have been very blessed. $600 joins other funds already allocated for 2021. Easy decision. Hopefully others who have no need for these funds will help local, trusted charities of one stripe or another.

The covid19 virus has made things inconvenient for some, and utterly devastating for so many others.

Broken Man 1999

[Call_Me_Op]

Broken Man,

Very kind gesture.

[cyclist]

Entirely appropriate for many Bogleheads, I think.

It’s exactly what we did with the last set of checks and what we’ll do with the next ones. And we don’t include those sums as we continue our own annual giving plans.

Lord knows there are plenty of real and immediate needs out there that make our own worries look trivial.

Cyclist

[LadyGeek]

FYI - See: [CARES Act Above the Line Charitable Deductions]

[DoTheMath]

I also plan to donate my stimulus money. In fact, I "pre-donated" $300 this week to take advantage of the CARES tax deduction.

Many people are having a hard time this year. Those of us with economic security should step up. I should hope that the majority of BH folks will pass along whatever stimulus money they might receive.

[BrandonBogle]

That is very generous of you!

We have been very blessed. $600 joins other funds already allocated for 2021. Easy decision. Hopefully others who have no need for these funds will help local, trusted charities of one stripe or another.

The covid19 virus has made things inconvenient for some, and utterly devastating for so many others.

Broken Man 1999

I’ve done the same. Bonus, you can claim $300 of it on your 2020 return if you donate today/tomorrow even if you don’t itemize.

Meanwhile, I’ve deviated from my norm and all year have tipped 20-30% for takeout. In the past, I’ve only tipped for dine-in. Those few extra dollars won’t impact being able to put food on the table or having a roof over my head.

Lord knows there are plenty of real and immediate needs out there that make our own worries look trivial.

Cyclist

Indeed!

[bengal22]

I also plan to donate my stimulus money. In fact, I "pre-donated" $300 this week to take advantage of the CARES tax deduction.

Many people are having a hard time this year. Those of us with economic security should step up. I should hope that the majority of BH folks will pass along whatever stimulus money they might receive.

So you donated $300 in 2020?

[DoTheMath]

I also plan to donate my stimulus money. In fact, I "pre-donated" $300 this week to take advantage of the CARES tax deduction.

Many people are having a hard time this year. Those of us with economic security should step up. I should hope that the majority of BH folks will pass along whatever stimulus money they might receive.

So you donated $300 in 2020?

We donated much more than that, but the rest came from our DAF. I made a point of making the $300 cash donation in order to be eligible for the CARES deduction.

ETA: In particular, we donated the CARES stimulus money this year as well, but that was via our DAF.

[PatrickA5]

Our checks will go to our kids who's jobs have been affected by Covid. Same as last time.

[Wiggums]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

Well done Broken Man.

My kids made 40 boxed lunches for a local charity. There are so many people in need. We learned that they can easily distribute many times more.

[btenny]

Can someone please explain. I already donated several thousand $$ back in the summer to my local food bank. I upped my amount to add the previous stimulus check. I paid via my IRA funds so they are not taxed.

I expect I am now going to get some more stimulus money I do not need. So how do I donate to not get taxed. Should I give the charity some more IRA money this year? Next year? When?

Suggestions? Comments?

[Affable at 50]

Can someone please explain. I already donated several thousand $$ back in the summer to my local food bank. I upped my amount to add the previous stimulus check. I paid via my IRA funds so they are not taxed.

I expect I am now going to get some more stimulus money I do not need. So how do I donate to not get taxed. Should I give the charity some more IRA money this year? Next year? When?

Suggestions? Comments?

The stimulus money from the spring and from the recent legislation is not considered taxable. However, many folks have used the funds to increase their charitable donations for 2020.

The CARES Act included a provision for taxpayers who do not itemize to deduct up to $300 in charitable donations on their Form 1040.

I believe the recent legislation doubles the $300 deduction to $600 for 2021.

[bengal22]

Can someone please explain. I already donated several thousand $$ back in the summer to my local food bank. I upped my amount to add the previous stimulus check. I paid via my IRA funds so they are not taxed.

I expect I am now going to get some more stimulus money I do not need. So how do I donate to not get taxed. Should I give the charity some more IRA money this year? Next year? When?

Suggestions? Comments?

Stimulus money is not taxable

[TravelGeek]

I believe the recent legislation doubles the $300 deduction to $600 for 2021.

$300 for single, $600 for MFJ, no?

(for 2020 it was $300 for MFJ or single filers)

[02nz]

DW and my stimulus already appears in my credit union account, available 01/04/21.

I'm surprised your CU makes you wait so long. On all of my bank accounts, incoming direct deposits (like the stimulus payment) are immediately available, even if they still show as "pending."

[02nz]

I believe the recent legislation doubles the $300 deduction to $600 for 2021.

$300 for single, $600 for MFJ, no?

(for 2020 it was $300 for MFJ or single filers)

Nope, the above-the-line charitable deduction is $300 per tax return, so $300 even for MFJ. (EDIT: That was for 2020. Indeed for 2021 it's $600 for MFJ.)

[prd1982]

Can someone please explain. I already donated several thousand $$ back in the summer to my local food bank. I upped my amount to add the previous stimulus check. I paid via my IRA funds so they are not taxed.

I expect I am now going to get some more stimulus money I do not need. So how do I donate to not get taxed. Should I give the charity some more IRA money this year? Next year? When?

Suggestions? Comments?

As others mentioned, this income is not taxable. However, if you wait for a couple of days, and give as a 2021 QCD (Qualified Charitable Distribution), you will be able to reduce the amount of your RMD that is taxable. This will effectively convert your $600 non-taxable 2020 income into a $600 reduction of 2021 income.

[masha12]

Our checks will go to our kids who's jobs have been affected by Covid. Same as last time.

I think that is kind. Charity begins at home and sometimes direct aid to someone in need is most effective.

[pshonore]

I believe the recent legislation doubles the $300 deduction to $600 for 2021.

$300 for single, $600 for MFJ, no?

(for 2020 it was $300 for MFJ or single filers)

Nope, the above-the-line charitable deduction is $300 per tax return, so $300 even for MFJ.

The correct answer is $300 MFJ above the line for 2020, $600 MFJ below the line for 2021.

[02nz]

I believe the recent legislation doubles the $300 deduction to $600 for 2021.

$300 for single, $600 for MFJ, no?

(for 2020 it was $300 for MFJ or single filers)

Nope, the above-the-line charitable deduction is $300 per tax return, so $300 even for MFJ.

The correct answer is $300 MFJ above the line for 2020, $600 MFJ below the line for 2021.

Actually, the full, correct answer is: $300 for MFJ above the line for 2020, $600 for MFJ also above the line for 2021. Must be cash donations.

[Broken Man 1999]

Our checks will go to our kids who's jobs have been affected by Covid. Same as last time.

Sorry to hear of your kids job issues. Hope things improve soon for them. In your shoes DW and I would do the exact same thing. Helping starts with families and loved ones, then spreads to community needs.

There really are two pandemic experiences out there. I wish there was some way to direct the stimulus money directly to those who truly need the help, more of a very targeted effort, versus the shotgun approach.

I sincerely hope your kid's job issues are resolved quickly in 2021.

Broken Man 1999

[CarlZ993]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

We did the same. Except it was my DW's $600 instead of mine.

[obafgkm]

$1200 dollars (for me as "Head of Household" and my <17-year-old daughter) showed up this afternoon (December 30, 2020) in my credit union account, already available.

A portion is going to my local food bank.

[jmw]

Showed up in my credit union account this morning which usually posts direct deposits early.

[Broken Man 1999]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

We did the same. Except it was my DW's $600 instead of mine.

Uh oh! No good will come of that! Our stimulus amounts have each been received in my credit union account, as we don't have a joint account, and I pay the bulk of taxes. DW asked me this morning if any deposits were present. When I checked, sure enough there was one pending.

I did attempt to subtract a handling fee, but that didn't go over very well! I won't repeat what she said, as this is a family-friendly forum, and her comments weren't very family-friendly!

Broken Man 1999

[dogagility]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

Good use of the money.

[GerryL]

I pre-donated my first stimulus amount to a covid-related cause in order to get a match that was being offered. I just pre-donated the second one to a small local museum (small but outstanding) that is struggling during the shutdown.

My stimulus checks are both well below the max, but thanks to the RMD holiday, my 2020 income will enable me to get the remainder when I file my taxes. I was just thinking what I might do with those dollars. I won't be itemizing in 2021. And I've seen some people comment about donating to people in the community who are in need. I thought I might go to the bank and get a stash of $5 bill and keep them on had for extra tips.

[abuss368]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

Interesting. I figured this next wave would go easier since the Treasury has bank information.

Tony

[greg24]

How unfortunate that the stimulus seems to arrive earliest for those who need it the least. We felt some guilt when it arrived early for us last time.

[Rainier]

Mine showed up last night.

Any idea why my phased out payment is down to the penny?

[FrankLUSMC]

Mine showed up last night.

Any idea why my phased out payment is down to the penny?

+1 from my bank line item, mine is
Dec 31, 2020 IRS TREAS 310 T Uncategorized $1,102.30

[Billionaire]

After our trip to Cambodia in January 2019, we stayed in touch with our tour leader and a man who worked in the restaurant where we stayed. Their livelihoods have been taken away. I started sending them some money via Western Union and plan on sharing part of my stimulus with them.

[Affable at 50]

Mine showed up last night.

Any idea why my phased out payment is down to the penny?

The calculation is down to the penny because the Treasury uses the figures from your 2019 tax return and the U.S. government does not round transactions to the nearest dollar.

[djmbob]

Our stimulus payment posted to our account today!
Happy New Year
Ray

[Colorado13]

Mine shows as a pending deposit but the dollar amount is equivalent to a couple of Happy Meals. Maybe it's an error?

[MtnBiker]

Mine shows as a pending deposit but the dollar amount is equivalent to a couple of Happy Meals. Maybe it's an error?

Sounds like your adjusted gross income may be close to your phase out limit. The formula for phase out is that the payment is reduced by 5% of every dollar of income over the "full stimulus" income limit. The resulting phase out limit is lower for this second round because the full payment is a smaller number.

[ncbill]

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

[willthrill81]

Our stimulus dropped into our account this morning. I didn't think that it would happen that fast.

[Spirit Rider]

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

At a cost of $300MB - $400MB to the already ballooning federal deficit.

Edited

[ruralavalon]

DW and my stimulus already appears in my credit union account, available 01/04/21.

My $600 will immediately go to a local food kitchen. Still a great need for many.

Broken Man 1999

Our $1,200 is in our bank checking account available balance today 1/1. I didn't expect it this fast. We will probably donate at least half to our favorite charity.

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

At a cost of $300M - $400M to the already ballooning federal deficit.

Don't want any more ,thanks.

[Ron Ronnerson]

I was surprised to see it pending in my account a couple of days ago. It took months last time. I'll take what they gave but $2k would have meant each recipient instantly becomes a multi-thousandaire. It has a much nicer ring to it than $600, which is maybe enough to pick up some hand-sanitizer and toilet paper from the secret underground network.

[Broken Man 1999]

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

At a cost of $300M - $400M to the already ballooning federal deficit.

I think it would be $300 to $400 BILLION, not million!

Broken Man 1999

[chuckb84]

Our stimulus dropped into our account this morning. I didn't think that it would happen that fast.

Ours as well. I was surprised it was so fast.

[Broken Man 1999]

I was surprised to see it pending in my account a couple of days ago. It took months last time. I'll take what they gave but $2k would have meant each recipient instantly becomes a multi-thousandaire. It has a much nicer ring to it than $600, which is maybe enough to pick up some hand-sanitizer and toilet paper from the secret underground network.

DW and I were late in the process last year, but certainly earlier this year. Maybe they reversed the order this time...

I don't know why my credit union will drop the amount on 01/04/21, other than Monday, January 4 is the first day they are open.

At any rate it is there, so all is well. As soon as my credit card closes for this month, I'll send my $600 to a local charity. My payment date will be March 2.

Broken Man 1999

[Spirit Rider]

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

At a cost of $300M - $400M to the already ballooning federal deficit.

I think it would be $300 to $400 BILLION, not million!

Broken Man 1999

Edited

[Ron Ronnerson]

I was surprised to see it pending in my account a couple of days ago. It took months last time. I'll take what they gave but $2k would have meant each recipient instantly becomes a multi-thousandaire. It has a much nicer ring to it than $600, which is maybe enough to pick up some hand-sanitizer and toilet paper from the secret underground network.

DW and I were late in the process last year, but certainly earlier this year. Maybe they reversed the order this time...

I don't know why my credit union will drop the amount on 01/04/21, other than Monday, January 4 is the first day they are open.

At any rate it is there, so all is well. As soon as my credit card closes for this month, I'll send my $600 to a local charity. My payment date will be March 2.

Broken Man 1999

My credit union says it will drop in on the same date as yours. I'm not sure why either. It's certainly very generous of you to donate it.

[Broken Man 1999]

Got our $1,200...but I still want $2,000 each...fork it over, cheapskates!

At a cost of $300M - $400M to the already ballooning federal deficit.

I think it would be $300 to $400 BILLION, not million!

Broken Man 1999

Edited

" A billion here, a billion there, pretty soon, you're talking real money" sounds so quaint, today!

The saying, " A billion here, a billion there, pretty soon, you're talking real money " has been attributed to Senator Everett Dirksen, but there is no direct record of Dirksen saying the remark. Dirksen is also quoted as having said, "The mind is no match with the heart in persuasion; constitutionality is no match with compassion."

Broken Man 1999