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Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

Do we have to pay federal income tax on the first stimulus checks?

Do we have to pay federal income tax on the first stimulus checks?

Super Contributor
Posts: 359
Registered: ‎08-21-2017

Re: Do we have to pay federal income tax on the first stimulus checks?

No.

Honored Contributor
Posts: 18,604
Registered: ‎10-25-2010

Re: Do we have to pay federal income tax on the first stimulus checks?

[ Edited ]

No, the stimulus check is tax free. However, if you received a payment of interest after the first check, because it arrived late, that interest amount is taxable.

 

If you received interest, the IRS will send you a 1099-INT form to file with your taxes.

Honored Contributor
Posts: 13,510
Registered: ‎05-23-2010

Re: Do we have to pay federal income tax on the first stimulus checks?


@Carmie wrote:

No, the stimulus check is tax free. However, if you received a payment of interest after the first check, because it arrived late, that interest amount is taxable.

 

If you received interest, the IRS will send you a 1099-INT form to file with your taxes.


@Carmie I should have asked if there's a place on the ez tax form to note that a stimulus was received. I don't think I saved any paperwork or letter that might have come with our check. I do have a photo of the check. 

Esteemed Contributor
Posts: 7,708
Registered: ‎03-09-2010

Re: Do we have to pay federal income tax on the first stimulus checks?


@Mindy D wrote:

Do we have to pay federal income tax on the first stimulus checks?


@Mindy D,  there is no federal tax on the stimulus checks but some states that have income taxes have not yet said if the stimulus money will be taxable at the state level.

 

At least that is not something you have to worry about.

The eyes through which you see others may be the same as how they see you.
Honored Contributor
Posts: 18,604
Registered: ‎10-25-2010

Re: Do we have to pay federal income tax on the first stimulus checks?

@Mindy D   My  arrived by direct deposit and I didn't get any paperwork.

 

i don't think we have to worry about it or even claim it on the tax form unless we are due the money and never received it.  You can request the  stimulus money on the tax form if you were forgotten.


If you received interest, the IRS will send you a form to file taxes with. I received ten dollars and change separate from the first deposit, so I know I will owe taxes on that...waiting for my 1099-INT to be sent to me.

 

 

Honored Contributor
Posts: 16,577
Registered: ‎03-11-2010

Re: Do we have to pay federal income tax on the first stimulus checks?

call me a cynic

but eventually the tax man will come calling on this not this year but sometime 

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Esteemed Contributor
Posts: 7,097
Registered: ‎09-05-2014

Re: Do we have to pay federal income tax on the first stimulus checks?

The payment is not income.  It is, therefore,  not subject to taxation.

 

It has been structured and classified as a "refundable tax credit."

 

It's all spelled out in the text of the legislation. 

Honored Contributor
Posts: 16,577
Registered: ‎03-11-2010

Re: Do we have to pay federal income tax on the first stimulus checks?


@Johnnyeager wrote:

The payment is not income.  It is, therefore,  not subject to taxation.

 

It has been structured and classified as a "refundable tax credit."

 

It's all spelled out in the text of the legislation. 


 

 

agree but that pot of money will eventually have to be filled .˙.  taxes 

 

Esteemed Contributor
Posts: 7,097
Registered: ‎09-05-2014

Re: Do we have to pay federal income tax on the first stimulus checks?

Oh, that's a whole different story.

 

I can't think about that now.  I'll think about it tomorrow.