Will Uncle Sam Tax My Stimulus Payment?

Photo by Jim Barber from Shutterstock

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.

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1 thought on “Will Uncle Sam Tax My Stimulus Payment?”

  1. 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?

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