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Stimulus Appeal

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    I can't help but feel that I'm a victim of poor timing. 2019 was not a great year for me. In July I was laid off and and took early retirement and my wife went on disability the same year. In order to survive I took 170k out of my 401k which was tax deferred so I paid income tax on it for 2019. It also changed my AGI to 269k which made me unqualified for the stimulus as I assume that they are simply looking at the AGI from the 2019 tax filing. I know I'm crying over spilled milk but we could use the money like everyone else. Thoughts?
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    You can actually still qualify further down the down, if your 2020 AGI qualifies. Technically this 2020 stimulus is an advance on a tax credit/tax rebatement for 2020 filers. Do you think your 2020 AGI will qualify you? If so, you will get the stimulus, it will just be in the form of a tax credit on your 2020 filing, when you file in 2021:

    If your income for 2020 falls below these thresholds, you can still claim the Economic Impact Payment as a tax credit when filing to the IRS at the end of the year—even if you didn't qualify based on your income in 2018 or 2019.

    "The Economic Impact Payment is a credit that will be calculated on the 2020 Individual Income Tax Return and will be reduced for any advances received, which are the payments being released now," David M. Kaplan, principal at the accounting firm Bernard Robinson & Company, told Newsweek.

    "The amounts now are an advance based on the information the IRS has from the 2019, or 2018 if applicable, Individual Income Tax Return they have on file.

    "Taxpayers who were phased out from receiving the advance of the Economic Impact Payment but whose adjusted gross income would qualify in 2020 will get the credit on their 2020 Individual Income Tax Return."

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    J.K.Logic Wrote:

    You can actually still qualify further down the down, if your 2020 AGI qualifies. Technically this 2020 stimulus is an advance on a tax credit/tax rebatement for 2020 filers. Do you think your 2020 AGI will qualify you? If so, you will get the stimulus, it will just be in the form of a tax credit on your 2020 filing, when you file in 2021:

    If your income for 2020 falls below these thresholds, you can still claim the Economic Impact Payment as a tax credit when filing to the IRS at the end of the year—even if you didn't qualify based on your income in 2018 or 2019.

    "The Economic Impact Payment is a credit that will be calculated on the 2020 Individual Income Tax Return and will be reduced for any advances received, which are the payments being released now," David M. Kaplan, principal at the accounting firm Bernard Robinson & Company, told Newsweek.

    "The amounts now are an advance based on the information the IRS has from the 2019, or 2018 if applicable, Individual Income Tax Return they have on file.

    "Taxpayers who were phased out from receiving the advance of the Economic Impact Payment but whose adjusted gross income would qualify in 2020 will get the credit on their 2020 Individual Income Tax Return."

    JK, thanks for the reply. That’s great news even if I have to wait for the 2020 returns.