Image the following scenario…
Suppose that Uncle Sam calculated your stimulus payment based on your 2018 or 2019 tax return, when, let’s also assume that your income was lower then, but, as for 2020, your income was higher. What happens in this tricky situation?
Fortunately, a senior tax policy analyst was kind enough to remove the mystery. Garrett Watson said that, in this situation, namely if a taxpayer has a higher income in 2020, he or she will not have to pay the credit back.
Put differently, “any adjustments to a taxpayer’s rebate on 2020 tax returns will be in the taxpayer’s favor,” he added.
You might also find useful:
- Here’s Why Your Stimulus Check Could Be Delayed
- 6 Last-Minute Moves That Will Lower Your 2020 Tax Bill
- 4 Essential Documents You Need During the COVID-19 Pandemic
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.