Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

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investmax
Posts: 213
Joined: Thu Mar 11, 2021 7:00 pm

Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

Post by investmax »

Dear Friends,

I am married joint filer with 1 child. In April last year, I received 'x' dollars from the first stimulus deposit. I am assuming I got more than what I was eligible for as I had by that time not filed my 2019 tax returns. So the treasury calculated my check based on my 2018 returns. In 2019 however I had higher income (at least 15K more) due to some RSUs at work vesting that year. I filed my taxes subsequently in July before the extended tax filing deadline. Last year due to covid the regular April tax filing deadline was extended to July.

In January 2021, I received another stimulus deposit of 'y' dollars in January. This was proportionally much lesser than the first deposit and I assume this was because the 2019 taxes had been filed and the treasury factored the 2019 income in this deposit.

So if this is the case, it may be likely that since the first stimulus check was based off my 2018 income, I may have been overpaid in that round. Do I need to pay this additional money back, how do I calculate the amount of overpay and finally how do I pay/ adjust this back.

I will be working on my tax returns next week and any input will be appreciated.

Thanks in advance.
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vitaflo
Posts: 1905
Joined: Sat Sep 03, 2011 3:02 pm

Re: Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

Post by vitaflo »

The government does not claw back stimulus paid to you. If you were paid, you will not have to return it or pay taxes on it, even if you were technically not supposed to receive it. Count your blessings.
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Eagle33
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Joined: Wed Aug 30, 2017 3:20 pm

Re: Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

Post by Eagle33 »

Actually your 2020 AGI determines the proper Recovery Rebate Credit (RRC) for your household. However, if you received more than that amount in the two stimulus checks, you don't have to pay the difference back. If you received less stimulus than the 2020 RRC, then IRS will factor that into your 2020 tax refund.
cogito
Posts: 311
Joined: Fri Nov 30, 2018 1:12 am

Re: Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

Post by cogito »

Although its not exactly a fair or efficient way of doling out funds, no, you do not have to pay back the stimulus. I purposefully have delayed filing our 2020 returns because we're due to collect 5600 bucks next week, and if Uncle Sam is going to cash out my children's futures, damned if I'm not going to take delivery and at least put it in some Bitcoin and college savings for them to try and even out the scales. Take it and don't look back.
taojaxx
Posts: 311
Joined: Wed Jul 18, 2012 8:25 pm

Re: Stimulus Check First and Second: Do I need to pay back with my 2020 tax return?

Post by taojaxx »

Any stimulus payment you got is yours to enjoy, even if you didn't qualify for it ex-post.
"Money for nothing and checks for free, that's the way we do it"
Uncle Joe. :sharebeer
Better lucky than smart.
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