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Esteemed Contributor
Posts: 7,134
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?

Frequent Contributor
Posts: 101
Registered: ‎08-21-2017

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

No.

Honored Contributor
Posts: 13,335
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.

Esteemed Contributor
Posts: 7,134
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: 6,343
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 more I learn the more I realize how little I know.
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Honored Contributor
Posts: 13,335
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: 13,310
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 

Respected Contributor
Posts: 4,238
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: 13,310
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 

 

Respected Contributor
Posts: 4,238
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.