A possible scenario…
Hypothetically speaking, let’s think about the following situation: If a taxpayer owed $1,000 in terms of taxes but also had a $1,200 refundable tax credit, he or she would get a tax refund check of $200 from the IRS.
Now, that everything is clear because you’re actually receiving what amounts to a refundable tax credit in the form of a stimulus payment right now, meaning that you’re not waiting to put your hands on the money from the credit this year when you file your tax return for 2020, you’re getting what the IRS called—an advanced refundable tax credit.
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.