Author Topic: Coronavirus Stimulus Aid Package  (Read 153082 times)

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1140 on: March 15, 2021, 06:42:03 PM »
Thanks for the info!

So technically, would the following scenario work? You qualify in Q1 for 20%+ reduction -  get the safe harbor in Q2 - Qualify again in Q3 for a 20%+ reduction - and get another safe harbor for Q4.

Thanks
Yep.

Offline incendia

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Re: Coronavirus Stimulus Aid Package
« Reply #1141 on: March 15, 2021, 08:00:18 PM »
IRS guidance on $10,200 deduction:
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation
$150k threshold based on MAGI, not AGI.

HT: @Deal Guy

Any guidance for people that already filed?

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #1142 on: March 15, 2021, 09:33:17 PM »
IRS guidance on $10,200 deduction:
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation
$150k threshold based on MAGI, not AGI.

HT: @Deal Guy

What about FAMILY LEAVE?
It is issued in a 1099G just like unemployment, and ends up on the exact line on the tax return.
Does that also get reduced by up to 10200?

If someone had 8k unemployment and 2k family leave, can they deduct 8k just for unemployment, or 10k to cover both?

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #1143 on: March 15, 2021, 09:39:32 PM »
IRS guidance on $10,200 deduction:
https://www.irs.gov/faqs/irs-procedures/forms-publications/new-exclusion-of-up-to-10200-of-unemployment-compensation
$



What is the definition of this paragraph in the above IRS link?

"If you made contributions to a governmental unemployment compensation program or to a governmental paid family leave program and you aren't itemizing deductions, reduce the amount you report on line 7 by those contributions. If you are itemizing deductions, see the instructions on Form 1099-G."

All w-2s in ny and nj make you pay into family leave and unemployment (at least in NJ).
Can you deduct the $100 you pay into UI or FLI, off of the 1099G? Is that on top of the 10,200?
What is the reasoning behind this?

Offline YesThatsMe

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Re: Coronavirus Stimulus Aid Package
« Reply #1144 on: March 15, 2021, 11:22:08 PM »
Huge chance that there will be up to $50k forgiveness for student debt. For those who don't have any, how can we possibly load up on some before it happens to Tzedakah?

Offline Dan

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Re: Coronavirus Stimulus Aid Package
« Reply #1145 on: March 15, 2021, 11:27:56 PM »
Huge chance that there will be up to $50k forgiveness for student debt. For those who don't have any, how can we possibly load up on some before it happens to Tzedakah?
[citation needed]
Save your time, I don't answer PM. Post it in the forum and a dedicated DDF'er will get back to you as soon as possible.

Offline YitzyS

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Re: Coronavirus Stimulus Aid Package
« Reply #1146 on: March 15, 2021, 11:30:12 PM »
[citation needed]
I'm no expert, but if the new bill included "tax-exempt"ness on student debt forgiveness for the next few years, I think it's pretty clear that there are plans to proceed with the forgiveness.

I'm no expert, but is this not a good indicator?

Offline Jellybelly

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Re: Coronavirus Stimulus Aid Package
« Reply #1147 on: March 15, 2021, 11:37:02 PM »
If there is forgiveness, would it have to have been borrowed before a certain time?
Is it too late to borrow now?

Online Euclid

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Re: Coronavirus Stimulus Aid Package
« Reply #1148 on: March 15, 2021, 11:37:50 PM »
If there is forgiveness, would it have to have been borrowed before a certain time?
Is it too late to borrow now?
Same thoughts...

Online cgr

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Re: Coronavirus Stimulus Aid Package
« Reply #1149 on: March 15, 2021, 11:38:24 PM »
Huge chance that there will be up to $50k forgiveness for student debt. For those who don't have any, how can we possibly load up on some before it happens to Tzedakah?
Paging all accredited yeshiva and seminary administrators

Offline yitzgar

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Re: Coronavirus Stimulus Aid Package
« Reply #1150 on: March 15, 2021, 11:58:32 PM »
I'm no expert, but if the new bill included "tax-exempt"ness on student debt forgiveness for the next few years, I think it's pretty clear that there are plans to proceed with the forgiveness.

I'm no expert, but is this not a good indicator?
There are already a number of student loan forgiveness programs in place. (Some are already nontaxable)

Offline ShimshonK

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Re: Coronavirus Stimulus Aid Package
« Reply #1151 on: March 16, 2021, 01:40:04 AM »
Huge chance that there will be up to $50k forgiveness for student debt. For those who don't have any, how can we possibly load up on some before it happens to Tzedakah?
I'm no expert, but if the new bill included "tax-exempt"ness on student debt forgiveness for the next few years, I think it's pretty clear that there are plans to proceed with the forgiveness.

I'm no expert, but is this not a good indicator?
I'm not sure this is the right thread to discuss this on, but in any case, this has been discussed for a long time. Some democrats have been pushing for $50k, but all along it seems Biden wants to do $10k.
Definitely does seem like at some point in this presidency, some sort of student loan forgiveness will be a real thing. Saying that right now there is a high likelihood of 50k is maybe pushing it, but it's a possibility.
Not sure if we want to get into the logic of student loan forgiveness -- or lack thereof -- but this is probably the most vehemently I've ever hated a proposal in my life.

Offline kangarruu

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Re: Coronavirus Stimulus Aid Package
« Reply #1152 on: March 16, 2021, 08:02:10 AM »
I'm no expert, but if the new bill included "tax-exempt"ness on student debt forgiveness for the next few years, I think it's pretty clear that there are plans to proceed with the forgiveness.

I'm no expert, but is this not a good indicator?

Zero relationship. Normally the amount of a forgiven loan (whether student loans, credit cards, whatever) needs to be included in income and subject to tax. The America Rescue Act doesn't create new forgiveness programs or change existing ones. Instead, the very few people who are already entitled to forgiveness under their existing plans won't have to include the amount of forgiveness as income. Some existing forgiveness programs already have this feature and some don't. None of it is related to creating new forgiveness programs.

Offline YitzyS

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Re: Coronavirus Stimulus Aid Package
« Reply #1153 on: March 16, 2021, 08:15:14 AM »
Zero relationship. Normally the amount of a forgiven loan (whether student loans, credit cards, whatever) needs to be included in income and subject to tax. The America Rescue Act doesn't create new forgiveness programs or change existing ones. Instead, the very few people who are already entitled to forgiveness under their existing plans won't have to include the amount of forgiveness as income. Some existing forgiveness programs already have this feature and some don't. None of it is related to creating new forgiveness programs.
I was not stating that there was forgiveness in the American Rescue Plan. I was only speculating that if there is such a big focus on making "$50k student debt forgiveness non-taxable," then the thought of passing $50k forgiveness is probably already percolating in enough of their minds.

You don't pass a law about something you think will never happen. That was my assumption. As others mentioned, there are already other student loan forgiveness programs, so my point is possibly wrong. But I do think the categorization of "zero relationship" is somewhat overstated.

Offline ytwes

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Re: Coronavirus Stimulus Aid Package
« Reply #1154 on: March 16, 2021, 11:13:19 AM »
I am wondering if someone can help me. I live in Israel. I was supposed to get my first stimulus check but never received it. Then filed 2019 return with bank details and got the second one. I filed my 2020 on Feb 12 so I can claim my first stimulus check. My return was taken for quality review. Now it is still being processed. If the stimulus goes off of my 2019 return I get nothing since my AGI was high. If it goes off of my 2020 return I get a lot of money (I BH have lots of kids). I really need this money. Anything I can do???

So now I called IRS again (time number 5) and they said they issued a CP12. They disagree with something on my return and my refund should be less. They are mailing me a letter but since I live in Israel I will never get it (as per my experience). There is supposed to be a number on this letter that I can call. If anyone knows this number that would be great. They said another 4-6 weeks before I see any money.

Offline Deal Guy

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Re: Coronavirus Stimulus Aid Package
« Reply #1155 on: March 16, 2021, 11:28:13 AM »
What about FAMILY LEAVE?
It is issued in a 1099G just like unemployment, and ends up on the exact line on the tax return.
Does that also get reduced by up to 10200?

If someone had 8k unemployment and 2k family leave, can they deduct 8k just for unemployment, or 10k to cover both?

Anyone know if a 1099G for Family leave gets the same $10,200 reduction as unemployment?

Offline kangarruu

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Re: Coronavirus Stimulus Aid Package
« Reply #1156 on: March 16, 2021, 03:45:42 PM »
I was not stating that there was forgiveness in the American Rescue Plan. I was only speculating that if there is such a big focus on making "$50k student debt forgiveness non-taxable," then the thought of passing $50k forgiveness is probably already percolating in enough of their minds.

You don't pass a law about something you think will never happen. That was my assumption. As others mentioned, there are already other student loan forgiveness programs, so my point is possibly wrong. But I do think the categorization of "zero relationship" is somewhat overstated.

I take your point, but there's no provision making $50k of forgiveness non-taxable. Section 9675 applies to all forgiveness through 2026, regardless of amount. There are a small number of loans that are anticipated to be forgiven in that time period (since most loans didn't switch to qualifying plans until several years later). Without the connection to $50k I don't think there's any reason to consider this part of the groundwork for future $50k forgiveness plans.

Offline YitzyS

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Re: Coronavirus Stimulus Aid Package
« Reply #1157 on: March 16, 2021, 05:55:22 PM »
I take your point, but there's no provision making $50k of forgiveness non-taxable. Section 9675 applies to all forgiveness through 2026, regardless of amount. There are a small number of loans that are anticipated to be forgiven in that time period (since most loans didn't switch to qualifying plans until several years later). Without the connection to $50k I don't think there's any reason to consider this part of the groundwork for future $50k forgiveness plans.
My mistake. For some reason, I thought the student loan forgiveness was capped at $50k to be non-taxable. I just went back and saw I was wrong.

Offline Kobe Bryant

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Re: Coronavirus Stimulus Aid Package
« Reply #1158 on: March 16, 2021, 06:39:03 PM »
Anyone know if a 1099G for Family leave gets the same $10,200 reduction as unemployment?
It does not.

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Re: Coronavirus Stimulus Aid Package
« Reply #1159 on: March 16, 2021, 06:42:24 PM »