Nice Surprise! Stimulus Doesn’t Count As Income
Posted by Richard on April 1, 2021
Tax free money? Is that even possible? It seems so with stimulus checks.
Stimulus payments are not considered taxable income and will not be subject to income taxes, according to the IRS.
More than half of Americans don’t know that stimulus payments are non-taxable, a statistic that reflects the widespread confusion surrounding this year’s tax season, according to Forbes.
No stimulus check?
Individuals who never received economic impact payments can request a Recovery Rebate Credit. According to CNET, millions of Americans never got the first or second stimulus checks, possibly due to IRS error or missing money for dependents. Tax non-filers, such as SSI or SSDI recipients, were also more likely to miss their payments.
To request your rebate, simply claim your full stimulus check amount as a Recovery Rebate Credit on your tax return. According to CNET, this credit combines stimulus money with your tax return, so you could receive a larger tax refund as a result or reduce your tax bill. Outstanding debts such as overdue child support payments could be deducted.