- Jurisdiction
- US Federal Law
Our legislators are currently working on another stimulus package, currently with $1,400 to be given out. We'll see if it happens. On the past two, the income cutoff was $75,000, and stepped down from there, so I'm assuming they will keep those guidelines. Here's my question.
My normal income is below the $75,000 limit. However, I ended up on a furlough from work, that has extended into 2021. When I was given the furlough, it was for a set time, and I took a COVID withdrawal from my 401K to cover the full time of the furlough. Taking the withdrawal has put my income for 2020 to over $75,000, which would reduce the amount I would receive.
In the mean time, I won't be able to file my taxes for a bit, because the tax preparation firms (H&R Block, etc) are saying they don't have all of the guidance on COVID withdrawals yet. That means that if we get a stimulus check before that, they would go based on my 2019 taxes, and I would get the full amount. So what happens then when I file my 2020 taxes? If I end up having to pay it back, or it gets docked out of my 2021 tax return, I'm not as concerned with having to give the money up. I did budget for my time off. I just want to know what I might have to look forward to.
My normal income is below the $75,000 limit. However, I ended up on a furlough from work, that has extended into 2021. When I was given the furlough, it was for a set time, and I took a COVID withdrawal from my 401K to cover the full time of the furlough. Taking the withdrawal has put my income for 2020 to over $75,000, which would reduce the amount I would receive.
In the mean time, I won't be able to file my taxes for a bit, because the tax preparation firms (H&R Block, etc) are saying they don't have all of the guidance on COVID withdrawals yet. That means that if we get a stimulus check before that, they would go based on my 2019 taxes, and I would get the full amount. So what happens then when I file my 2020 taxes? If I end up having to pay it back, or it gets docked out of my 2021 tax return, I'm not as concerned with having to give the money up. I did budget for my time off. I just want to know what I might have to look forward to.