Coronavirus Stimulus Aid Package

[avromie7]

Is it worth reading thru the whole IRS code now?

It's worth speaking to a competent accountant.

[TBD]

The $50 reduction in the increased CTC for every $1,000 earned over $150K is $50 per child or from the total credit?

[TBD]

AGI after application of sections 86, 135, 137, 219, 221, 222, and 469
Maybe these deductions get him under the $150k threshold?

Section 469 seems to be passive losses. Does it mean that the $150K AGI will be after including depreciation on real estate?

[avromie7]

The $50 reduction in the increased CTC for every $1,000 earned over $150K is $50 per child or from the total credit?

All the previous checks it was from the total credit.

[TBD]

All the previous checks it was from the total credit.

There was no previous CTC increase

[Kobe Bryant]

Doubly screwed. Priced out of the Ds generosity, but still on the hook for the 1.9T hit to the national debt.

Triply screwed if you count the $10.2K deduction and $1400/person checks separately.

Welcome to taxpayers hell.

[Kobe Bryant]

Wow. Its only for AGI under $150K???
I know someone who has $165k and was hoping to use the $10,200 deduction to become eligible for the $1,400, now it seems he will loose both......... ouch

12K in IRA?

[TBD]

Maybe the $150K limit will be for single, joint will be $300K?

[Joel]

What income amount will be the cutoff line for increased child tax credit?

Couples who earn up to $150,000 a year (in adjusted gross income) and single parents who earn up to $112,500 a year (in adjusted gross income) would be eligible to receive $3,000 a year per child through the age of 17 and $3,600 per child younger than 6.
Parents that earn slightly over these income levels would be eligible for a slightly reduced payment. And all couples with children who earn up to $400,000 would still be eligible for the $2,000 child tax credit.

[TBD]

Maybe the $150K limit will be for single, joint will be $300K?

The bill proposes to limit this benefit to households with AGI of less than $150,000 (for both single and married taxpayers).

https://www.bkd.com/alert-article/2021/03/senate-passes-latest-covid-19-stimulus-bill

[carrentals]

Any chance of the states adapting waiving $10,200 of unemployment income?
https://www.nysenate.gov/legislation/bills/2021/S5125

[Jack out of the box]

The accountant I spoke to said that everyone who filed would need to amend, but it shouldn't raise any red flags as everyone will be doing it.

Your accountant is unlikely to do it for free.

[Jack out of the box]

The text for the American Rescue Plan, which was recently revised to include a $10,200 UI deduction, indicates the following:
-the $10,200 will not count towards AGI
-if both spouses (joint return) received UI, both receive the deduction

https://www.congress.gov/117/crec/2021/03/05/CREC-2021-03-05-pt1-PgS1291.pdf
Page 100

If this passes then those of us accountants abroad will have to understand if this includes foreign UI. Hopefully the final language will be clear.

[yos9694]

Doubly screwed. Priced out of the Ds generosity, but still on the hook for the 1.9T hit to the national debt.

Triply screwed if you count the $10.2K deduction and $1400/person checks separately.

The 1.9T is the THIRD such spending spree in the last 12 months. The urban middle class was completely left out of all of it, while those in the upper or the lower both benefited tremendously (upper moreso of course).

A family with 8 kids missed out on $6,400 + $6,000 + $14,000 = $26,400 of post-tax money.

This group is also the widest base for tax revenue, and as a class pays the highest net rate, so they will carry a disproportionate share of responsibility for the deficit going forward. It's no wonder there is a rapidly shrinking middle class.

[Jack out of the box]

Regarding the Child Tax Credit and Child Care Credit, does anyone here understand the practical application of the clauses in the American Rescue Plan Act bill regarding the 6-month US residence requirement?

[YitzyS]

Your accountant is unlikely to do it for free.

The accountant (not my accountant, rather an acquaintance) told me that my accountant would probably charge me $100 to amend.

[AsherO]

The 1.9T is the THIRD such spending spree in the last 12 months. The urban middle class was completely left out of all of it, while those in the upper or the lower both benefited tremendously (upper moreso of course).

A family with 8 kids missed out on $6,400 + $6,000 + $14,000 = $26,400 of post-tax money.

This group is also the widest base for tax revenue, and as a class pays the highest net rate, so they will carry a disproportionate share of responsibility for the deficit going forward. It's no wonder there is a rapidly shrinking middle class.

Nice analysis on how this exacerbated the problem and broadens the moat mitigating any hopes for financial motility. So unAmerican.

[AussieMan]

Regarding the Child Tax Credit and Child Care Credit, does anyone here understand the practical application of the clauses in the American Rescue Plan Act bill regarding the 6-month US residence requirement?

Would it not be similar to current EITC which foreigners do not get.

[yesitsme]

Nice analysis on how this exacerbated the problem and broadens the moat mitigating any hopes for financial motility. So unAmerican.

Someone that makes over 150k is evil, there is no way to excuse it, he is probably one of the following 1)white, 2)male, 3)us citizen, 4)normal

[Dan]

Anyone want to check my work on this draft post?
Will the House change anything from the Senate version before passing?

https://www.dansdeals.com/more/coronavirus/congress-passed-another-coronavirus-stimulus-bill-need-know/