We're back answering your stimulus
and also your tax related questions
with Mark Hensley from AARP North
Carolina Triad region, Kevin Robinson
from Robinson Tax and Accounting,
and Scott Braddock with Scott
Braddock Financial all right,
this person is asking Mark,
where can you get help with
taxes as a senior?
So AARP does offer the only free tax
assistance program in the United States.
I recommend that you contact your
your local Senior Center to see if
they are serving as a drop off spot.
We are up and running.
It is different than in past years
because of social distancing.
So just look up your Senior Center and
give them a call for the closest location.
I know I just called the
Greensboro Public Library and they had
something like 600 people that they're
helping all the way through April 3rd.
An all of the appointments are booked,
so there's lots of people who want help
and the one thing that she told me was.
Go online for IRS free file because
there's lots of video tutorials
that will walk you through that.
So at this point that seems to be
like the only local thing that we
can kind of help him with Scott.
This person is asking,
I borrowed some money from my 401K last year.
Will I be penalized for doing
that on my taxes?
So actually, going to let Kevin answer this,
I I believe it would work the
same as it would in a traditional
year as far as the taxation goes.
But let me let's make sure with Kevin.
If I had the basic someone tap
the RA in 2020 for covid relief,
for example Tanya, then generally
speaking they would be taxed.
If it's a regular RA on the distribution,
but the cares act it allowed
him to forgo the penalty,
fit their under age 59 and a half for covid
relief so they would could be taxed on it,
but they would get the waiver for
the early withdrawal penalty would
take place for them for 2020,
and basically they can have the option
of paying the tax on that distribution.
Up to three years if they choose to.
OK, this person is asking what
is the last date that you should
be receiving tax documents like
investments or wage statements.
Things like that. Well
gentlemen, most people that 10 VW two
should go out by the end of January.
Antenna 90 nines along that time frame,
I understand that a lot of the 1090
nines from the brokerage houses have
until like February 15th time frame.
They can request an extension
until March 15th.
Is my understanding Scott may
have more information on that,
but generally anywhere from
January 31st to February 15th,
things should be getting out in
the Mail to the taxpayers. But
we're on the same page with that
Kevin. OK mark. This person is
saying I heard that they were
discussing people on Social Security,
getting a smaller amount
of stimulus. Is that true?
No, this is really based on
your income amount and and
they have made to my knowledge,
no delineation between sources of income.
So at this point I've seen or
read nothing about the source.
It is truly the amount, right?
And this person is. I've
got a follow up. Do you have to
have already filed your 2020
taxes to receive a third stimulus?
Well, that's a good question,
but it's it's similar to the first
thing was based on 2019 or 2018 return,
but it made the quicker they can
get their 2020 return filed.
Obviously the better and it would be
based on that in space if their income is
down then maybe that in 2020 versus 19.
That would help him.
Plus they would avoid identity theft.
The quicker they can
file their 2020 return.
Alright, and if you didn't have a
good 2020 you might want to file
really fast before the stimulus
payment goes through because it
will be done then on your 2020
income versus your 2019.
Hey Scott, this person says alright,
where's all this stimulus
money coming from anyway?
Well, I'll tell you where
it's not coming from.
It's not coming from taxation.
A lot of folks believe that that's
where the stimulus money is coming from.
But you know, keep in mind what we do is
we run on a deficit here in this country,
so we're spending more money
than what we bring in.
So the quick overview here is
whenever we pass the bill,
we're going to let the Treasury
go ahead and create chlorate
debt instruments such as T-bills
are keynotes T bills and bonds,
and then they sell that debt to
individual investors, institutions,
sometimes sovereign government.
But the big player here is
the federal government.
Of course they have the magic
tool where they can create money.
They're not printing it on the printing
press today in the digital age.
Just create the numbers on the
on the on the computer screen and
transfer that over to the Treasury
and they buy up a bulk of that debt.
By the way,
what we need to be careful of the
mindful of here moving forward is inflation.
If the government doesn't get
this right and cut back on some
of the stimulus and the PPP and
the Main Street loans,
it could lead to inflation.
So that's where I encourage
folks to keep their
eyes on OK. This person is asking
what if the IRS deposited my
stimulus to the wrong account?
How will I be able to get it Mark?
Oh I'm gonna also lean to Kevin
because he's great with the forms,
but if they if they sent it to
the wrong account, the bank is
expected to send that directly back
to the IRS and then the follow up.
As Kevin is said,
the rectification is to use Line 30
when you file your 2020 taxes to show
that you actually didn't get it.
But back during 2020 there was a
form that you could do to trace the
payment and and Kevin that that form
is probably going to stay the same.
I
think so. I know base alot of people
were having trouble getting refunds
or trying to get their stimulus.
And you know, I know one of the forms
is when you can't get it or whatever.
Have troubles and on one one form which
involves the Taxpayer advocate assistance
trying to track that down as well.
Enforce the online assistance.
I know there's a number two you can
call and I can give that to Tanya
put online that you can actually
talk to an IRS person about your
stimulus payment so alright. And
then this last question says
my son is 18. I claim him as
a dependent but he also files.
Will a stimulus check go to him?
Or may mark. It
goes back to who is claiming the dependency.
So if Mom is counting her son is independent,
she would get the payment amount.
Hopefully, hopefully they're
going to decide that's the same
amount $1400 for all recipients.
Regardless if you're dependent or not.
Alright, so a dependent is
independent is independent and you if
you file an you have them as a dependent,
you get the money. Alright.
Thanks so much for your expertise
and your time gentlemen,
we appreciate it.
Thank you for your questions.
If you missed anything,
it's going to be in the
two wants to know section.