Since the CARES Act—which was signed on March 27—both Uncle Sam and the Treasury Department paid out more than $218 billion in stimulus checks. The first payment was like a breath of fresh air for many Americans, but they still need additional financial support.
Thankfully, the taxman already sent a second round of stimulus checks, which, indeed, is smaller, but yet, it’s welcomed by all Americans who are struggling right now.
Being accustomed to owing taxes on almost everything, some Americans wonder if this type of financial help will get similarly taxed. The quick and short answer is a relieving, no.
The Internal Revenue Service said that the stimulus payments will not get taxed, will not minimize a person’s refund, or maximize the amount of money a taxpayer owns when filing his/her 2020 (or 2021) tax return.
However, if you’re eligible for a stimulus payment, there are other things you should also know. Click through to find out more!