How much of a stimulus check are you expecting and how are you going to spend i?

[Zamboni]

^Thank you for updating it!

[hooplady]

Ditto, thanks for updating! Whether based on 2019 or 2020 I should be getting $1400. I guess I'll sock it away in case I need to pay additional taxes in 2021.

[Dave1442397]

Thanks for the calculator! Based on that, for our family of three we'll get $678, which will make up for the $443 I just paid the IRS because TurboTax did some funky calculation on our 2017 tax return.

[kenmoremmm]

when it says that it's based on your 2019 or 2020 AGI, is it taking the higher of the two, or whichever one is most current at the time of stimulus being provided?

[CCCA]

when it says that it's based on your 2019 or 2020 AGI, is it taking the higher of the two, or whichever one is most current at the time of stimulus being provided?

It takes the latest data that the IRS has, so if you've already filed 2020, it'll use that. 

[kenmoremmm]

if you haven't filed 2020 returns, and you qualify for full stimulus payment, but your 2020 returns indicate that you would not qualify for the full amount, will 2021 returns subtract out the balance?

[terran]

if you haven't filed 2020 returns, and you qualify for full stimulus payment, but your 2020 returns indicate that you would not qualify for the full amount, will 2021 returns subtract out the balance?

As I understand it, they'll base your stimulus payment on 2020 if it's been filed, otherwise they'll base it on 2019. If your 2021 income qualifies for a larger payment than you received (regardless of whether it was based on 2019 or 2020) then you'll you'll receive the difference as a tax credit when you file next year. If 2021would qualify you for a lower payment then you wouldn't pay back the difference.

[Rosy]

We each get $1,400
- I plan to save mine to finish up a long-anticipated savings goal.
His will go toward my new TV (b-day present) and new lighting in the kitchen and dining area.

All other checks went to donations and to help family - so I do not feel guilty about spending some on us in this last round.

[TheContinentalOp]

More ammo

[fuzzy math]

More ammo

You'd better have a lot of dependents otherwise your stimulus won't get you very far!

[fuzzy math]

Yeehaw the $150k limit in the final bill assures that my family will get the entire $7k.

[kanga1622]

We should get $5600. Hopefully half to the kids’ college funds and the other half to some upcoming medical expenses.

[jehovasfitness23]

Nothing directly but it will go towards this year's goals.

Vacation, new car, renovation.

[SharkStomper]

All into the taxable account to buy stonks.

[OtherJen]

We expect to receive the full amount for two adults. My check will go towards new laundry appliances. Husband’s will be invested.

[Morning Glory]

More ammo

You'd better have a lot of dependents otherwise your stimulus won't get you very far!

Har. My husband is thinking about selling his 17 and the ammo is now going for $22 per box. He paid $12 per box a couple years ago and has a ton of boxes because he overbuys everything. The ammo turned out to be a good investment!

[iluvzbeach]

More ammo

You'd better have a lot of dependents otherwise your stimulus won't get you very far!

Har. My husband is thinking about selling his 17 and the ammo is now going for $22 per box. He paid $12 per box a couple years ago and has a ton of boxes because he overbuys everything. The ammo turned out to be a good investment!

My husband just sold some excess ammo-related stuff he had for $960. He bought it for well less than a third of that price. He made quite the return on his initial investment, although I’m sure it would have done much better over the years in some VTSAX. This is definitely the time to clear out stuff one won’t use, as it is bringing in a profit. I’m a minimalist at heart, so I hope he’ll keep clearing the shelves. ;)

[Zamboni]

Hmmm, new answer for "what are you going to do with all this extra money?":
Hookers & blow, guns & ammo

Looky there, it even rhymes!

[Raenia]

Looks like we'll be expecting 2800 this time around.  It'll go toward some electrical work we need to have done, instead of pulling from savings.

[FIREandMONEY]

Expecting the $5600 direct deposit, and then the additional $1600 per under-5 child on top of the existing $2000 per child tax credit.  We have two kids under 5.

So, $8800 ($1400*4) + ($1600*2) total windfall due to this latest legislation.  Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

So at the the end of year tax time, I would end up with a $1800 deduction per child on my taxes instead of the regular $2000, but I would have $1800 cash in hand per child.

I will likely be investing a significant portion of the $8800. Some VTI and Bitcoin.  For sure an additional $1600 will be going into each child's 529 this year.

[ohio4life]

Looks like I am down to about 800 now due to filling my 2020 taxes already. It would have been the full 1400 if I didn't do my 2020 taxes. Whoops.

I will be buying nothing with the 800. I already have too much cash, so I should probably figure something out. I do better on a budget. I am wrapping up a bathroom renovation and may start on the other one or another house project when this is over. I probably don't need any extra cash on hand for renovations and seem to have enough cash flow to keep these projects rolling without hitting savings much. I never really have plans for extra cash because I typically don't ever have any. I should probably up my contributions and get into a negative cash flow situation for a bit to deplete my extra cash. The market seems a little volatile to push it all in at once. I don't like money just sitting as cash, but I don't want to get into a selling of brokerage shares situation again. That was a common problem for me a few years ago, when my spending creeped up on me. I have a separate and growing emergency fund account (cash) that I would tap into now, so I am not sure what I am worried about. I've been holding cash for too long because these renovation projects have taken so long to start.

[ontheheel]

While we planned on using a chunk of this for rebuilding my Jeep's engine, we ended up fully funding it already, so the $7k will go to:

$700 - fun money (saving up for a Vortex Razor 22-48x65 spotting scope)
$700 - give away
$5600 - invest

As for the $9600 we'll receive in child tax credit, that will all get invested and given away (90% & 10%, respectively)

The irony of all this is that the helicopter money is going straight into maxing our tax-advantaged accounts, which will increase our helicopter money next year, which will also go into tax-advantaged accounts, promoting a virtuous circle.

[ontheheel]

Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

That's what I read on WaPo, but I've not read the bill text yet.

[joe189man]

I think we get $0

[Malum Prohibitum]

I updated the calculator to include the new $1400 payments that seem likely to go through. It has lower thresholds $50k for single, $75k for head of household and $100k for married filing jointly.


https://engaging-data.com/stimulus-check-calculator-dec-2020/

Looks like we are getting another ~$2200 in addition to the $1400 from the earlier round.
We have been getting take out more than normal. Probably donate more to the food bank as well.

I think the calculator's thresholds are incorrect:

The latest Senate bill would provide direct payments worth up to $1,400 per person to families earning less than $160,000 a year and individuals earning less than $80,000 a year.

The payments will phase out faster than they would have under the House version of the bill, which set the income caps at $200,000 for couples and $100,000 for individuals.

That means that not everyone who was eligible for a check earlier will receive one now -- but for those who do qualify, the new payments will top up the $600 checks approved in December, bringing recipients to a total of $2,000 apiece.

Individuals earning less than $75,000 would receive the full $1,400.

Married couples earning less than $150,000 a year would receive $2,800 -- and families with children would be eligible for an additional $1,400 per dependent.

https://www.wvtm13.com/article/third-stimulus-check-calculator-how-much-will-i-get/35770186#

[Malum Prohibitum]

I've seen a lot of new articles/stories saying the stimulus is based on your 2019 or 2020 income, depending on the latest return filed when the stimulus gets doled out.  However, what I've read most places is sorely lacking in completeness.

The bill actually says it's a tax credit for the 2021 tax year, for which you would file your return in 2022.

The advanced payments are based on 2019 and 2020 tax returns.

Government Reference:

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/7.%20Tax_sxs.pdf

"Treasury is directed to issue this credit as an advance payment based on the information on 2019 or 2020 tax returns."

"Taxpayers receiving an advance payment that exceeds their maximum eligible credit based on 2021 tax return information will not be required to repay any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the amount of the advance payment, taxpayers can claim the difference on their 2021 tax returns."

Government Reference:

https://waysandmeans.house.gov/sites/democrats.waysandmeans.house.gov/files/documents/7.%20Tax.pdf

"8 ‘‘SEC. 6428B. 2021 RECOVERY REBATES TO INDIVIDUALS. 9‘‘(a) IN GENERAL.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2021 an amount equal to the 2021 rebate amount de-termined for such taxable year."

Questions and answers - non-government reference:

https://www.forbes.com/sites/anthonynitti/2021/02/09/democrats-propose-round-three-of-covid-related-stimulus-checks-what-you-need-to-know/

Q: Is it determined based on our 2021 tax returns, because if so, we’re going to be waiting awhile, and I’d like that cash ASAP.

A: It works like this, we will all ultimately claim a “credit” equal to the stimulus payments we are owed based on our 2021 tax information, on our 2021 tax returns. But to speed up that process, the checks you receive if the bill becomes law will be based on either your 2019 or 2020 tax return.

So - wait.

Plain English - If my 2019 income was less than $150k, and I am married filing jointly, then I get $1400 per adult and child dependent under 17.  2 little kids and a 17 year old means $5600.

Then, assume I earn $175k this year (2021).

I am going to owe the entire $5600 back come April 15 of 2022??????

[Malum Prohibitum]

AH, wait, I see it says "not be required to repay . . ."  Whew!

[HPstache]

We put a deposit down on a US-built travel trailer.  We will be spending all of our stimulus money (we did not use either of the earlier two rounds for anything either) to buy it.  I'm starting to lose track, but I think we're at $13,900 total, and that does not include the CTC early payments starting in July.  I think that's $900/mo? Seems like too much money to me... but if that's what the government thinks it will take to stimulate our economy, I'll spend it like a good citizen.

[dandarc]

Engagingdata calculator looks right to me - are you sure the '$1400 per adult' checkbox was marked when you ran it?

[Cork]

Taxes.  Giving it right back to pay taxes...

[Roland of Gilead]

The not requiring it to be paid back thing is super weird.

It seems to be rewarding procrastination or prognostication

Either you were lazy and didn't file your 2020 taxes yet and qualify or you were prescient and harvested some losses so you qualify.  Doesn't matter how much you made in 2020 or make in 2021.

[ohio4life]

The not requiring it to be paid back thing is super weird.

It seems to be rewarding procrastination or prognostication

Either you were lazy and didn't file your 2020 taxes yet and qualify or you were prescient and harvested some losses so you qualify.  Doesn't matter how much you made in 2020 or make in 2021.

Yeah, I don't get it, but it's hard to complain if you made more in 2020 than 2019 when so many were struggling. I explained the whole delaying 2020 tax return filling to my GF and she went ahead and did her taxes anyways. She didn't get it, obviously, and now she will be getting $0. She seriously filed yesterday and her AGI is just above 80k. She made significantly under 75k in 2019. We are trying to figure out ways to live with or come to grips with our mistakes. I think we have landed on just being thankful we are way better off than most and thinking about it as an unexpected bill. We really don't need the 2k, but we are on the path like all of you so it stings a bit.

[kanga1622]

Either you were lazy and didn't file your 2020 taxes yet and qualify or you were prescient and harvested some losses so you qualify.  Doesn't matter how much you made in 2020 or make in 2021.

Or you owe money and don't want to pay until April. :) We are WELL below the threshold so will get the full stimulus again but I haven't filed our 2020 taxes because I like to keep my money until April.

[charis]

Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

That's what I read on WaPo, but I've not read the bill text yet.

I just read about this but don't really get it. If we are MFJ with <$150 AGI and two kids 5+ years, we will start getting $500/month in July?

[HPstache]

Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

That's what I read on WaPo, but I've not read the bill text yet.

I just read about this but don't really get it. If we are MFJ with <$150 AGI and two kids 5+ years, we will start getting $500/month in July?

That's correct.  I agree the info out there is kind of sporadic, so it's difficult for me to say for certain, but the way I understand it is that the Child Tax Credit for 2021 filing is increasing from $2000 to $3600 / $3000 depending on if your child is over or under the age of 6.  They are paying 1/2 the CTC as an advance starting in July split into 6 payments... so either $1800 or $1500 divided by 6 payments.  That's where the $300 or $250/mo per child comes from as I understand it.

[mizzourah2006]

So, if i understand it correctly if you were part of the phase out for the 2nd stimulus check you're getting nothing for the third? Need to decide if I should wait a bit to file my 2020 taxes or just go ahead and do it. We got about half of the children's portion of the 2nd stimulus check.

[terran]

So, if i understand it correctly if you were part of the phase out for the 2nd stimulus check you're getting nothing for the third? Need to decide if I should wait a bit to file my 2020 taxes or just go ahead and do it. We got about half of the children's portion of the 2nd stimulus check.

The phaseout range is much more narrow at AGI of $75-80k single, $150-160k married this time.

[mizzourah2006]

So, if i understand it correctly if you were part of the phase out for the 2nd stimulus check you're getting nothing for the third? Need to decide if I should wait a bit to file my 2020 taxes or just go ahead and do it. We got about half of the children's portion of the 2nd stimulus check.

The phaseout range is much more narrow at AGI of $75-80k single, $150-160k married this time.

Yeah, in that case I'm completely phased out. I think we were at $185k MAGI last year for a family of 4.

[yachi]

This latest one is going to be $8,400 for our little clan.  Crazy money!  I remember when we bought our house in 2010.  We used a 10K government stimulus to pay the downpayment.  I thought that was like winning the lottery! 
The first Covid stimulus I used to mentally OK getting takeout to our favorite places.  The next one went to braces.  I'm not sure where this on will go.  We have to replace our backyard deck, and the roof has 1-3 years left on it.  I got a quote for $7K for the roof, which was less than I expected.  We're also getting a couple of thousand back in taxes. 

[SquashingDebt]

I should get the full $1400.  Glad I held off on filing my 2020 taxes, because I think I would have been ineligible, or in the phaseout range.

This round is going towards paying my 2020 taxes and a new mattress.  Yay for upgrading from full to queen!

[Engineer93]

Was doing my taxes on Sunday and saw that our AGI went from $90,000 in 2019 to $165,000 in 2020.  Definitely going to hold off on filing our taxes as long as we can. 

[dmc]

We got a partial payment last year, we are both retired and have some flexibility on or income.  So last year our income was below the $150,000 level and I filed as soon as I could.  I see we got the $2,800 credited to our account yesterday.

I had already ordered a new gun, it was more than my share of the $2,800, but doing my part to stimulate the economy.  The wife is going to blow hers.

[Michael in ABQ]

Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

That's what I read on WaPo, but I've not read the bill text yet.

I just read about this but don't really get it. If we are MFJ with <$150 AGI and two kids 5+ years, we will start getting $500/month in July?

That's correct.  I agree the info out there is kind of sporadic, so it's difficult for me to say for certain, but the way I understand it is that the Child Tax Credit for 2021 filing is increasing from $2000 to $3600 / $3000 depending on if your child is over or under the age of 6.  They are paying 1/2 the CTC as an advance starting in July split into 6 payments... so either $1800 or $1500 divided by 6 payments.  That's where the $300 or $250/mo per child comes from as I understand it.

So let's see, $3,600 x 2 + $3,000 x 4 = $19,200 total child tax credits for 2021. If they pay out 1/2 in 6 installments starting July that will be $1,600 per month. I wonder if it will be like the EITC advance payments where you have to file a form, or if they'll just use 2020 tax information and send out direct deposits like they've done with the stimulus money.


With 6 kids we'll be getting $11,200 for stimulus round 3. Right now that will go towards buying a business. That should cover all or most of the transaction costs for a lawyer, accountant, due diligence firm, etc.

[Paul der Krake]

Last I heard, they want to pay the Child Tax credit out at a rate of $300 a month (for under 5yo) from July-December.  Anyone confirm?

That's what I read on WaPo, but I've not read the bill text yet.

I just read about this but don't really get it. If we are MFJ with <$150 AGI and two kids 5+ years, we will start getting $500/month in July?

That's correct.  I agree the info out there is kind of sporadic, so it's difficult for me to say for certain, but the way I understand it is that the Child Tax Credit for 2021 filing is increasing from $2000 to $3600 / $3000 depending on if your child is over or under the age of 6.  They are paying 1/2 the CTC as an advance starting in July split into 6 payments... so either $1800 or $1500 divided by 6 payments.  That's where the $300 or $250/mo per child comes from as I understand it.

So let's see, $3,600 x 2 + $3,000 x 4 = $19,200 total child tax credits for 2021. If they pay out 1/2 in 6 installments starting July that will be $1,600 per month. I wonder if it will be like the EITC advance payments where you have to file a form, or if they'll just use 2020 tax information and send out direct deposits like they've done with the stimulus money.


With 6 kids we'll be getting $11,200 for stimulus round 3. Right now that will go towards buying a business. That should cover all or most of the transaction costs for a lawyer, accountant, due diligence firm, etc.

That is probably the most "stimulating" use of the money we've seen in this thread. Congrats on your large brood that made it all possible.

[Dave1442397]

With 6 kids we'll be getting $11,200 for stimulus round 3. Right now that will go towards buying a business. That should cover all or most of the transaction costs for a lawyer, accountant, due diligence firm, etc.

I like your business plan - creating the employees before funding the business.

[Michael in ABQ]

With 6 kids we'll be getting $11,200 for stimulus round 3. Right now that will go towards buying a business. That should cover all or most of the transaction costs for a lawyer, accountant, due diligence firm, etc.

I like your business plan - creating the employees before funding the business.

Yeah, they think $5/hour is great pay. :)

But seriously, we will probably pay the older kids to do some of the pick and pack since it's an ecommerce business.

[Pigeon]

Just shy of $3K. We are donating it to the regional food bank.

[Car Jack]

DW and I get zip.  Our AGI went way down compared to last year, but over $160k, so we're out.  Because of the lower AGI, we did capture some of the last stimulus check via our tax returns.

On the bright side, both my kids are independent.  Neither got checks before now because they had no income and did not submit tax returns.  So for this year, they're getting money via their tax returns and each will get $1400. 

[Cooper62]

Getting $5,600.  College daughter's $1,400 is going towards next year's tuition and books.  High School junior's $1,400 is going into college savings account.  We spent $800 of the remainder today on car repairs.  Rest will go to a few treats, charity and savings for house repairs.  Found out there are students at my daughter's college eating only one meal a day and without basics such as toothpaste and shampoo.  Plan to give some of the money to a group of parents that are organizing weekly boxes of fresh food and necessities to a group of about 50 students in need.

[Villanelle]

For probably the first time in my life, I am looking at incoming money as somehow separate. Usually, it goes into the account and I do what I always do--when the balance reaches a certain amount, I scrape off the excess and invest.

In this case, I may use this to give myself permission to buy somethings for the new house when we move.  I've been stalking FB marketplace to determine prices I can expect to pay for certain items and I may splurge a little.  Then the rest would go into the account as usual.