Tax Credit for travel

[twangster]

This pandemic isn't over.  Some parts of the country are just starting to settle down while other parts of the country are just now starting to spike their way up to their first peak or their first wave.

 

Somehow I think a plan to motivate travel that inevitably involves parts of the country that are just starting to experience the worst of the pandemic will only lead to more spread.   

 

"Here's $4k, now use it to spread the virus and hopefully everyone in your family survives".

 

Do people still think it's a hoax?

 

How is this a good idea?

[ldubs]

I like the concept because it will help our home economy.   Of course, I agree with Twangster this can't work very well while we are still in pandemic mode.  I would be opposed to this incentive being given for travel in another country.  

[mpk]

On 6/25/2020 at 7:20 PM, firefly333 said:

Though some value guy from a brokerage said Tesla was one of 3 stocks he wouldnt be holding right now. Crazy high pe like a tech stock.

 

Tesla is a tech company.  It brought new technology to a stagnant industry, automobiles.

Edited June 27, 2020 by mpk

[firefly333]

9 minutes ago, mpk said:

 

Tesla is a tech company.  It brought new technology to a stagnant industry, automobiles.

Well I'm not paying 1k for a tech company that makes cars. Lived thru the tech bubble. A barely profitable company however you want to label them, no thanks.  But besides the issue of tax exemptions which the public subsidized to help them grow. 

 

Car sales here in the ditch, techie or not. They closed the title transfer office, gave everyone a 90 day extension. Idk about you, but if I buy a car I want the title in a timely way. 

[Computer Nerd]

On 6/25/2020 at 4:53 PM, Eddie Wilson said:

 

Actually, IRS should receive these dollars back.  Their choice was speed or accuracy.  In the interest of a speedy distribution of the Stimulus check, they knew they could not cross check all individuals. So into the system they built a return policy.   

 

Per IRS..................

A payment made to someone who died before they received the payment should be returned to the IRS. Return the entire payment unless it was made to joint filers and one spouse is still living. In that case, return half the payment, but not more than $1,200.

If someone can't deposit a check because it was issued to both spouses and one spouse has died, the individual should return the check. Once the IRS receives and processes the returned payment, an Economic Impact Payment will be reissued to the surviving spouse.

The IRS encourages people to share this information with family and friends.

 

 

So they realized this was going to happen and again, in an effort to speed up the cash distributions, they chose this method.  Unfortunately the reports I read reported half the story.  Those report outlets were also the ones complaining in late March that a mid-April distribution of the economic stimulus payment was too slow...........?  Can't win either  way.

 

As for the original poster, I think I saw in the past few days that the "travel credit" was shot down, but a second stimulus check is being considered.   

 

Eddie   

And when they send the returned check back to the dead person again? Then what??
Yep, I've personally seen this happen.

[Computer Nerd]

7 hours ago, twangster said:

This pandemic isn't over.  Some parts of the country are just starting to settle down while other parts of the country are just now starting to spike their way up to their first peak or their first wave.

 

Somehow I think a plan to motivate travel that inevitably involves parts of the country that are just starting to experience the worst of the pandemic will only lead to more spread.   

 

"Here's $4k, now use it to spread the virus and hopefully everyone in your family survives".

 

Do people still think it's a hoax?

 

How is this a good idea?

Hoax, no.

Something to crap my pants over, no.

[JT1962]

I agree.  We could get a tax credit for eating at local restaurant to which we can take public buses for free, never leave the city, never spend a dime on actual travel

Tennessee just approved a restaurant sales tax holiday to encourage people to return to restaurants. This is in addition to the sales tax holiday for school supplies they have had for several years.

2020 Restaurant Sales Tax Holiday

Begins: Friday, August 7
Ends: Sunday, August 9
Retail sale of food and drink by restaurants and limited-service restaurants is exempt.

The fact that positive cases are increasing and some restrictions have been re-implemented may postpone or cancel the new restaurant weekend.

https://www.wrcbtv.com/story/42285779/tennessee-will-have-2-sales-tax-holiday-weekends-this-year-with-more-taxfree-items-on-the-list

[Eddie Wilson]

1 hour ago, Computer Nerd said:

And when they send the returned check back to the dead person again? Then what??
Yep, I've personally seen this happen.

 

That is a great point computer nerd, and is one of many potential questions.

 

There is a plan B.  The stimulus payment is actually a prepaid rebate of 2020 taxes.  So next winter, when completing your tax returns, there will be a rebate/stimulus reconciliation. 

 

If a 2019 married filing jointly couple, and one of them passed prior to receiving the  $2,400 stimulus, and they DID NOT return the excess, the extra $1,200 is SUPPOSED (according to plans, but you never know) to calculated and repaid with the 2020 income tax return.

They would rather everyone follow plan A, that being to return the excess payment up front.

 

Nerd you make a great point with the resent stimulus payment, it is a perfect example of their left hand has no idea what the right hand is doing.

 

Next of course is....what is plan C for those who don’t return the check and DON’T file 2020 returns?  I have no idea.  

 

What about plan D to inform taxpayers exactly how much they received as a stimulus check in mid 2020?  Many people will not remember, won’t save the info letter IRS sent with the payments (letter 1444) and will need that amount for completing the reconciliation..So, we may have an added cost of sending reminders (like forms 1099) of exactly how much you received.  This even gets tougher if there is a second round of stimulus payments.

 

Eddie

Edited June 27, 2020 by Eddie Wilson

[boscobeans]

On 6/25/2020 at 12:15 PM, fredflint said:

 

Note that cruising would not be included other than riverboat, of course right now it is just an idea.

 

Wondering WHY just Riverboat cruises????

 

[boscobeans]

23 hours ago, firefly333 said:

Stu barney just talked about this. A up to $4k tax CREDIT, for vacationing within thr United states.

 

Nothing that hit cruises, except someone said maybe river cruises. 

 

Vacations to Puerto Rico and the US Virgin Islands are considered to be DOMESTIC TRAVEL??

.  "Explore America tax credit that Americans can use for domestic travel," ???

[JT1962]

 
Wondering WHY just Riverboat cruises????
 

They are under the 250 passenger / crew limit that is listed in the CDC No Sail Order. My understanding is that any boat / ship with less than 250 total passenger and crew capacity is, and has been, allowed to sail in the US.

[Blizzard54]

16 hours ago, pcur said:

 

1.  Be retired and have two Social Security incomes.  

2.  Keep your other taxable income to a minimum.

3. Be over maximum age for SS.

 

As you age, your SS income getting to the point of being non-taxable.  With the standard deductions and tax credits being what they are, all your taxable income can be offset by those and itemized deductions.  It's a balancing act.

Planning ahead and maximizing Roth IRA contributions can also be a big help.

With the new standard deduction we paid no income tax last year.

 

[pcur]

On 6/27/2020 at 10:12 AM, Blizzard54 said:

Planning ahead and maximizing Roth IRA contributions can also be a big help.

With the new standard deduction we paid no income tax last year.

 

I moved all our retirement money to cash accounts years ago.  I didn't want to mess with the stock market anymore.

[Blizzard54]

1 hour ago, pcur said:

I moved all our retirement money to cash accounts years ago.  I didn't want to mess with the stock market anymore.

I also moved a large share of mine out of the market, enough to live on and cruise for about 10 years.  I have some in the market for long term, either to spend later or pass along. 

[gatour]

On 6/27/2020 at 10:41 AM, JT1962 said:

 

They are under the 250 passenger / crew limit that is listed in the CDC No Sail Order. My understanding is that any boat / ship with less than 250 total passenger and crew capacity is, and has been, allowed to sail in the US.

 

And US riverboats are staffed with US crew.