Is your stimulus check taxable?

There are many questions and misconceptions regarding the Economic Impact Payments received in 2020, commonly known as “Stimulus Checks”. Here we answer some of these questions:

Do I have to pay taxes on the “Stimulus Checks” money received?

NO, the “Stimulus Checks” money is not considered taxable income and it will not affect your tax bracket neither your tax refund, if any. The “Stimulus Checks” money is an advance tax credit that was distributed ahead of tax season to stimulate the economy during the COVID-19 pandemic.

Do I have to pay back my “Stimulus Checks” money received?

NO, you do not have to pay it back to the government.

What if you did not receive the “Stimulus Checks” or you received less than the full amounts?

If you were eligible to receive the “Stimulus Checks”, you must file a 2020 tax return to claim the “Recovery Rebate Credit” even if you are not required to file a tax return for 2020.

What is the “Recovery Rebate Credit”?

The Recovery Rebate Credit will be included in your 2020 tax return to make sure that taxpayers who did not receive the “Stimulus Checks” or received less, can also get it.

How will the “Recovery Rebate Credit” will be calculated?

The “Stimulus Checks’” were based on your 2018 or 2019 tax year information. The Recovery Rebate Credit is similar except that the eligibility and the amount are based on 2020 information you include on your 2020 tax return.

Can I benefit from the “Stimulus Checks” and the “Recovery Rebate Credit”?

No. The money received from the “Stimulus Checks” will be deducted from the “Recovery Rebate Credit” on your 2020 tax return. Make sure to be accurate when you provide the “Stimulus Checks” amounts received to avoid delays and rejections when filing your 2020 tax return.