plrraz
Level 3

I have been deluged with clients asking about their stimulus three payments wanting me to prepare the 2020 return so they can get that sweet sweet cash.  I've tried to explain that it's also based on 2019, and that adjustments will be made based upon 2020 return as compared to 2019.

I apologize if this has been asked and answered and I've looked through the forums as well as the IRS instructions, but I am unclear still and have advised the client to hold on to their overpayment - the taxpayers (married joint, with one dependent in 2019) received 1,400 for their son, who filed his 2020 return and claimed himself (he graduated from college) - he also received 1,400 based upon his 2020 return.

Some stimulus overpayments have not been required to pay back, but I am unclear as to whether or not the parents will need to repay the 1,400 they got for their son, who they won't be claiming in 2020, but claimed in 2019.  Again, I advised them to set that money aside for now and be prepared to repay it.

The second issue I have is personal, also stimulus related.  My AGI is over the threshold for 2019 and I haven't prepared my 2020 return as of yet.

Yesterday, I received an email from my bank notifying me that my wife and I received 1,400 from the IRS.  Two things here, one which is more concerning than the other:

1 - I've used three different stimulus 3 calculators, as well reading through the IRS guidelines, and it is beyond clear that we are not eligible for #3 ---- so, I'm heading down to the bank to see if perhaps it was mistakenly deposited into my checking account.

2 - I have never given the IRS my account number, nor have I used this account for direct deposit when I've made an ACH payment or received (ha ha ha ha ha ha) a refund - I use another bank account which I still have.  I know the IRS has knowledge of our bank account info, but I just opened this account within the last year and am surprised that a stimulus payment was deposited into this account.

My guess is that someone else's stimulus was deposited into our account by mistake, so I'm headed down to the bank when I take a short break in a few.....

 

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