All taxpayers know that a tax credit minimizes their tax bill significantly. For instance, if a taxpayer owns let’s say $1,500 in federal income taxes and the same taxpayer gets a $1,000 tax credit, his/her tax bill will be only $500.
However, when it comes to refundable tax credits, it might feel like Lady Luck is on our side. A tax credit does wonders, but a refundable tax credit can also turn your tax bill into a tax refund (on top of that).
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4 thoughts on “Will Uncle Sam Tax My Stimulus Payment?”
My wife and I have already given $1,200.00 to our daughter who is about to lose her job. We also plan to give her any additional new monies we receive. Where does that place us tax-wise–or her?
How about PPP. I’m a one man show so the PPP was to aid in replacing my huge losses as compared
to my 2019 income. Is that money going to be added to my tax bill?
I did not receive a stimulus check last yearor this year. I do not file a tax return as I don’t make enough money.
I did not receive a stimulus check last year. I did not file a tax return and did not make enough money.