And welcome back tonight.
We're answering your questions
about the stimulus check,
maybe tax questions as well.
We have a few experts here to get
all too that we have Mark Hensley.
With AARP of North Carolina Scott
Braddock with Scott Braddock
Financial and Kevin Robinson with
Robinson tax and accounting services,
you can text her questions to us.
The number is 336-379-5775.
We already have some great questions
coming in so we will get right to those.
First, we'll start with this.
Can you explain the child tax credit?
How will you get it if you've
already filed your tax return?
Well, the Child tax credit on the
2020 return. Maddie, of course,
is for child under independent under
tooth underage 17 is $2000.00.
So if they've already filed it again,
the stimulus payment is not based on
the dependence and so that would factor
in the dependence that are, you know.
Basically, the currently existing
now with their with their parents.
So their seamless payment.
I mean basically going to take the last
tax return they did and they've already
got that child tax credit on the return.
But the stemless credit would.
Well, as we mentioned,
at $1400 would go for the eligible
dependents to the person claiming
him by either parent or if it
could be as Mark mentioned,
could be a son or daughter claiming
8 their parent as a dependent.
So it goes on that stimulus payment
and then that gets factored the
stimulus payments coming out.
Now get factored in the 2021
return at year end so the
bind administration is saying
we could see these payments.
Start hitting our bank accounts
as soon as this weekend.
We've seen with past checks that the
direct deposits had earlier than those
paper checks or cards come in the Mail.
So people are asking can I put in
my direct deposit information?
Then on a website or call the IRS
to get my money sooner. Mark is
it too late to do that?
So yeah, so if you go to irs.gov
and you click on the 1st box which
is get coronavirus tax relief,
there is a message that says check
back soon for information on the 2021
economic impact payment they are in the
process of updating the tax provision
based on the recently passed plan,
so this is in place so keep
checking back at irs.gov.
But they have not updated the portal yet.
I understand someone says I'm
paying back taxes. How would
that affect this stimulus check?
Well, the good news here is,
is just like the second round of stimulus.
If you owe back taxes or you
owe child support in arrears.
So not that you owe child support,
but that you owe back child support.
You will be entitled to the stimulus
payment as long as you qualify with
the other income qualification.
So regardless of owing back
taxes or back child support,
if you're entitled to that
stimulus check based on income,
then you will receive that they will not.
Take that or give that to your debt.
Thanks for answering
both of those, Scott,
because my next question was
about paying back child support.
We we got that one in as well.
Alot of people asking about
dependence because it has changed
with this round of stimulus money.
If I have a college student,
will the money deposit in my
account or the students account?
So this stimulus check is
actually going to go to the tax
filer that claims the dependent.
Keep in mind that the tax filer
is claiming the dependent as a
financial burden to some extent,
so they're the ones that are going
to be entitled to this stimulus
payment for that dependent.
And then of course it will be
up to the tax filer whether or
not they share that stimulus
payment with the dependent,
every situation can be unique and different,
so that's for the for the
individuals to families.
Figure out
absolutely. We get this question a lot.
I never filed taxes.
I haven't received a stimulus of any
type in the past. I'm not working.
What do I do to get the stimulus money?
Well, go ahead Kevin.
Well, that's a valid question mad.
In fact, I've had a couple of
plants that have sort of dropped
off the scale, so to speak,
on the radar having to file taxes,
all they have is Social
Security income and disability.
So basically,
if they didn't get a stimulus payment,
the best thing they can do
is follow the 2020 return,
get their name in the system
and they can claim it online.
30 recovery rebate credit on the
1040SR or the 1040 whatever the
case may be. And when it comes to
paying taxes on the stimulus checks,
Kevin at do people pay any type
of taxes on these payments?
No, I think is even,
as Scott mentioned earlier,
we have to keep in mind that this
thing was payment is actually
a credit and basically advance
against the credit on the return.
So there's no tax owed against it.
It won't impact your refund on the federal,
it won't make you vote taxes
on the state, I guess.
To keep in mind is your adjusted
gross income to federal adjusted
gross income is what drives the
state tax return of North Carolina.
So therefore there's no impact federal
or state is just is basically the
payments advance against that credit.
That's coming on the return.
2020 and really probably a year from now
would be talking about this as well.
From the $1400,
and if there's any more that come out
during this year, someone says I am
filing for the first time this year.
I've already filed.
Am I going to get a stimulus payment?
Well again the basically they filed
and they filed correctly then there's
no reason they shouldn't get a
skin with payment if they qualify.
So basically probably filed a zero
return just to get the stimulus
payments like we talked about.
So they should get the stimulus payment.
You know in time food again,
line 30 recovery rebate
credit on their return, someone
writes in. I had a child and 2021.
Will she be getting a stimulus check?
So this is based on your
2020 income tax return.
So having independent starting
in 2021 is is not applicable to
this particular stimulus payment.
But I want to add to that and say
one of the additional changes is
if an individual was alive and you
received their stimulus payment,
they were alive on January the 1st 2021.
You are allowed to keep that
stimulus movement.
It's only if the person has passed.
After January,
the first thing you would have to return it,
and they'll be instructions available
about how to appropriately return a
stimulus for a deceased loved one.
Alright, Scott, Mark and Kevin are
going to stick around for a couple more
minutes to get your text questions,
and 3795775 were coming right back.