Are stimulus checks considered taxable income?
No, according to the IRS, stimulus checks are non-taxable income, which means that you won’t have to include the amount in your calculation of taxable income. Technically, the stimulus check is considered a refundable tax credit.
The good news for taxpayers is that if you didn’t receive the full stimulus check due to your 2018/2019 tax returns, you can recover the full amount you would be due based on your actual 2020 return. On the flip-side, if your taxable income is significantly higher in 2020 and you would have been phased out, you will not be required to return the money or pay taxes on the stimulus check. Its a win-win for taxpayers!
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