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If you received one or both of the stimulus checks that have been sent out within the past year, you may be wondering what will happen with your taxes. Will you be taxed for the stimulus check? Do you have to file more paperwork because you received a stimulus check? Will the stimulus checks impact your taxes (or how you file your taxes) in any way?
There are so many questions surrounding the stimulus checks, especially as we move into tax season. We’re here to answer some of the more frequently asked questions.
Will I be taxed for the stimulus check I received?
In short, the answer is no. The IRS doesn’t consider either of the two stimulus checks that have been sent out as income. And because it’s not considered income, then it’s not considered taxable. If you want a more detailed explanation, the IRS website has additional information on stimulus checks and taxes.
Do I have to file anything because I received a check?
To have received a stimulus check, you’ll have needed to file your 2019 tax return. But do you need to file anything after having received a stimulus check?
At this point, the answer is also no. Because these checks aren’t taxable, the IRS doesn’t require any additional paperwork or information. Tax returns require enough paperwork as it is, so let’s all be grateful this is one thing that doesn’t require filing.
What happens if my income changed since the stimulus checks were distributed?
If you previously didn’t receive a stimulus check because your income was too high, but your income was then reduced (or you became unemployed), you may receive the amount of the check through your 2020 tax returns. If your income has since increased after receiving the stimulus check, then nothing will change for you in terms of tax returns.
Will I have to pay back the stimulus check?
No. The check is considered a federal tax credit, meaning it won’t impact what you owe to the government through your tax return or through any other measure. Our friends over at Market Watch debunked this and other common myths about the stimulus checks.
Will I be eligible for the next stimulus check? Will there be another stimulus check?
We don’t know for certain at this point. We’ll let you know as soon as we do, so check out our blog page often for the most up-to-date information that we have available.
I still have questions about the stimulus checks and/or taxes.
That’s why we’re here. Contact us today to have all of your questions about stimulus checks and taxes answered by a reliable, well-versed tax specialist.
