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.
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.
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.
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.
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.
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.
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.