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wyre  
#1 Posted : Thursday, March 26, 2020 6:03:10 AM(UTC)
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I retired in mid 2019 , but with a large annual leave payout my income had not changed significantly for the year. 2020 will be quite different, unfortunately. For those of us who retired recently, the gov basing eligibility for emergency payout on 2018 or 2019 income tax return seems to be leaving us ineligible for the fed. “Corona” supplement just passed. This year, because I have a CSRS Pension, I had a WEP cut that reduced my tiny SS by almost 60%. I just started Medicare, which has added a significant surcharge based on my 2018 tax return. I realize people w/o jobs have a lot more to worry about than we federal retirees do , and health concerns take priority over everything — but given the drastic drop in our TSPs and other retirement savings, it feels we’ve been left out. Have any of you filed a change of income post retirement with social security? And, if so, will that income adjustment be recognized as documentation of “current” income level vs basing these fees/eligibility on income we no longer have? Curious to hear any comments regarding that social security adjustment . At this point, they’ve taken my full ( after WEP penalty) SS check + I still owe them more money for Medicare B coverage. Obviously, the current pandemic is top of mind, but if there’s a way to recoup some of that Medicare payment ( and/or become eligible for the assistance “everybody” except us will be receiving, I’d love to hear how to go about revising my “official” income. Or, do I have to wait til next year ( after 2020 taxes are paid) to request an income review?
smithandjones  
#2 Posted : Thursday, March 26, 2020 8:22:13 AM(UTC)

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Although checks are being sent immediately based on 2019 (if filed already) or 2018 taxes....it is actually a refundable tax credit based on your 2020 taxes. If you make more, or less, than the eligible amounts in 2020 it will be accounted for at that time.





thanks 2 users thanked for this useful post.
wyre on 3/26/2020(UTC), EngineerJim on 4/7/2020(UTC)
wyre  
#3 Posted : Thursday, March 26, 2020 8:49:30 AM(UTC)
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First I’ve heard of the “tax credit” adjustment. So, if income in 2020 is lower than in past years, but we receive no check now because 2018 was +100k, that will be adjusted as a tax credit when we file in 2021? That makes sense, but surprised no one is mentioning it. I think it might come as a relief to a lot of people. Thanks for the info! Can you point me to a source, so I can share it with worried friends ?
wyre  
#4 Posted : Thursday, March 26, 2020 9:09:38 AM(UTC)
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I found this speculation on motley fool that is along the same lines : “However, some believe that the final legislation could treat the payments as an advance credit that will be verified on 2020 tax returns. That raises the question of whether taxpayers will have to establish their eligibility again based on 2020 income levels -- and potentially have to pay back their stimulus checks if their income rose between 2018 and 2020.”

I haven’t seen final legislation, but this seems like good news for anyone whose income has declined since 2018.

Edited by user Thursday, March 26, 2020 9:10:25 AM(UTC)  | Reason: Not specified

SD Analyst  
#5 Posted : Thursday, March 26, 2020 11:22:11 AM(UTC)
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The Washington Post also reports that if you made.too much in 2019 but your 2020 income is low enough to qualify for the payout, it will be an adjustment on those taxes. https://www.washingtonpo...imulus-check-calculator/
thanks 1 user thanked SD Analyst for this useful post.
wyre on 3/26/2020(UTC)
EngineerJim  
#6 Posted : Tuesday, April 7, 2020 1:32:55 PM(UTC)
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Originally Posted by: SD Analyst Go to Quoted Post
The Washington Post also reports that if you made.too much in 2019 but your 2020 income is low enough to qualify for the payout, it will be an adjustment on those taxes. https://www.washingtonpo...imulus-check-calculator/
From that Washington Post article,
Quote:
What if my income is higher in 2020? You do not have to pay the government back. Technically a person’s 2020 income is what qualifies them for the payment. Since no one knows their total 2020 income yet, the government is using tax returns from 2019 and 2018 to figure out who qualifies for a check. If you get a payment and then your 2020 income is higher and thus merits a reduced payment or no payment, the money does not have to be paid back.

I hope that last sentence is correct. My 2019 return had less than $99,000 AGI. But if I have enough capital gains in 2020, it will be over (with my Pension). Any informed opinions on that?
I am not familiar with refundable tax credits.

Edited by user Tuesday, April 7, 2020 1:34:10 PM(UTC)  | Reason: Not specified

EngineerJim  
#7 Posted : Wednesday, April 15, 2020 6:03:42 AM(UTC)
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Checked my bank account today on-line. My stimulus check was deposited.
Since I filed my 2019 tax return in Feb, and the AGI was over $75,000, my refund/credit was reduced as expected.

Refund/credit = 1200 - ( 5/100*(AGI-75000) )
thanks 1 user thanked EngineerJim for this useful post.
SD Analyst on 5/8/2020(UTC)
wyre  
#8 Posted : Wednesday, April 15, 2020 6:26:38 AM(UTC)
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Speaking of AGI, or more correctly MAGI... does anyone know if the portion of pension that is non taxable ( the amount we receive back each year based on what we paid into the system) — is included in AGI? At least according to my tax software —it appears to be counted as “AGI” but then deducted to reach the “taxable income.” I’m concerned, when calculating either this stimulus or Medicare part B, that they are including money we paid in as income. I am kind of in the borderline as far as income categories go, so if it doesn’t count, I might be eligible for a reduction in part B extra penalty charge . Thanks, as always
MATMAN14  
#9 Posted : Wednesday, April 15, 2020 10:35:39 AM(UTC)

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CSRS retired. 77K AGI. Just got my 305.00 stimulus deposit. No Social Security.
EngineerJim  
#10 Posted : Wednesday, April 15, 2020 2:06:49 PM(UTC)
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Originally Posted by: MATMAN14 Go to Quoted Post
CSRS retired. 77K AGI. Just got my 305.00 stimulus deposit. No Social Security.

I thought you would have received more. Is $77,000 the amount on line 8b of your 2019 form 1040?
"8b. Subtract line 8a from line 7b. This is your adjusted gross income"
Or is it the taxable amount on line 11b?

On the 2018 form, AGI is line 7 and taxable income is line 10.
MATMAN14  
#11 Posted : Friday, April 17, 2020 5:29:09 AM(UTC)

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Reviewed my numbers and they were wrong. I did get a draw from TSP that made my Covid payment correct. Apologies!
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