milkman
Level 3
‎10-21-2020 06:44 AM

Client didn't receive 1st stimulus payment because of large capitol gains on 2019 tax return.  My understanding is 1st stimulus is refund of 2020 tax.  If when I file 2020 return and income is much lower,  would this  make client eligible for 1st stimulus payment?

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Just-Lisa-Now-
Level 15
Level 15
‎10-21-2020 06:50 AM

Its an advance on a 2020 credit, so yes, if they qualify with their 2020 income, they will get the credit on the 2020 return.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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hedgeslaw
Level 3
‎10-21-2020 08:10 AM

Yes. The stimulus payment was an advance payment of individuals' 2020 credit. The credit is refundable, so they will get it even if they owe no taxes. Back in the 80's we had a similar advance payment. On the next year's tax return, there was a box to check if taxpayer claims they did not get their advance payment and this triggered the additional credit calculation on the 1040.