Stimulus Money If You Paid Taxes

Americans won t be required to pay that money back come next year the treasury said.

Stimulus money if you paid taxes. Adults and qualifying children are both eligible for up to 600 each with the second payment. With the first stimulus check if you owed child support payments by as much as 150 the government gave states the right to garnish the amount you needed to pay. You do not owe taxes on the money and will not be required to pay anything back.

Some people assume that the irs will add the amount to your income generating a bigger tax bill or reduce your future tax refund when you file your tax return next year. For example if you owed 2 000. The stimulus payment or economic impact payment as the irs calls it is technically a tax credit for 2020.

The first round of checks was technically a rebate based on your latest filings with the irs. Even better the irs. With the second stimulus check each eligible adult will get up to 600 decreasing as income raises.

The irs also notes that receiving a stimulus check will not affect your eligibility for any federal assistance programs such as food stamps. Millions of second stimulus checks are on their way to americans after congress authorized. That goes for the second.

Because the stimulus payments in 2020 and 2021 are considered tax credits the payments are not considered as. According to the irs the stimulus checks are not income and taxpayers will not owe tax on it this means that it will not decrease any refund or increase what you may owe. For example if you owe 700 in federal income taxes for 2020 a 1 200 stimulus tax credit would net you a 500 tax refund.

But this isn t widely understood. Even better and unlike most credits the recovery rebate credit will give you money back even if it s more than the tax you owe or paid.