Will my coronavirus stimulus benefit be taxed?
Before spent your stimulus check, did you ask yourself: is my stimulus benefit taxable?
Despite what you may have heard elsewhere, the answer is no.
Confusion lies in the fact that stimulus checks are technically “considered an advance refund of a 2020 tax credit,” according to Neal Stern, a member of the American Institute of CPAs Financial Literacy Commission. This has led some to believe the money might be deducted from refund checks in future years.
The answer, however, is no: you won’t have to pay any of the check back. And it isn’t taxable.
Individuals with adjusted gross incomes less than $75,000 were eligible for $1,200 in benefits, along with married couples with adjusted gross incomes below $150,000. The feds also dished out $500 for every qualifying child younger than 17.
The amounts decreased by five dollars for every $100 of income above the $75,000/$150,000 line. Those earning more than $99,000 ($198,000 for married couples) received nothing.
Haven’t received your stimulus payment yet? The IRS has created a handy “Get My Payment” website to track the status of the economic impact checks.
Recently unemployed? Unemployment benefits are taxable, but you have options on how to pay. You can read more about unemployment benefits’ taxability here.
Here’s more handy economic advice crafted by AlterNet to help you through the coronavirus recession:
AlterNet Finance has a disclosure policy regarding writers and their investments. You can read it here.