Have you figured out Taxes on Your Stimulus Check yet?

[Dauntless]

https://www.cnn.com/2021/01/28/politics/stimulus-checks-taxes-unemployment-benefits/index.html

I haven't, the article didn't settle it.

I'm still wondering if they want maybe $200 for the $1,200 and what about the $600 I never got but they say we should have. If you didn't get it do you really get to claim that credit?

 

[Matt Gruber]

no tax to the irs, as per the irs. (they sent me a letter
as for various states i have no idea, except FL has NO income tax.

 

[Dauntless]

I did not get a letter, but I have since heard that. I'll see what state taxes say when I get to them. Got a thousand dollar lottery prize that the state says they don't tax, but if it's already in the Fed how do we take it out?

 

[Matt Gruber]

i think you will get a 1099 or similar notice if it is being taxed.
once the irs sent me a 1099 i overpaid the tax and they paid interest in the refund was a small $ amount.
anyway, there will be a lot of confusion on the free money. imo they are not going to send you to prison if you mess up :lol:
i'm no expert so don't take tax advice from me :lol:

 

[neptronix]

Doesn't matter to me. Happy to receive the money to invest in my business.
It's not often that the government cuts you a check to say sorry. Spend it wisely.

 

[Dauntless]

https://www.cnn.com/2021/03/07/politics/stimulus-payment-tax-credit-offset/index.html

 

[markz]

https://www.cnn.com/2021/03/07/politics/stimulus-payment-tax-credit-offset/index.html

Interesting dilemma

Some financially struggling Americans who owe back taxes will miss out on stimulus payments unless the Internal Revenue Service decides to change its rules.

I'd say normally tough luck, but with covid its different times.

 

[Dauntless]

So the difference between a relief program, money in the hands of desperate people that'll last a few weeks while they sort things out and keep the overall economy normal; or a stimulus program, money people spend because they don't otherwise have money to spend and it boosts the economy, ultimately isn't much. You want them getting the money so they'll spend it.

But if they don't want to pay their taxes, why should they be expecting anything to come their way?

 

[markz]

Do you have to pay taxes on your stimulus check?

 

[Dauntless]

What I read since I first posted that is no. If you didn't get the second check you can deduct that. But I don't get all my tax info until the end of this month so I haven't read the 1040 book yet.