Tax season is upon us. But nearly a year into the COVID-19 pandemic, there are plenty of questions about how to file.
I’m not an expert, but we talked to lots of them, and asked: Will the stimulus checks be taxed?
“The stimulus payment itself is not taxable," said Kemberley Washington, tax analyst with Forbes Advisor.
The checks are considered tax credits — not income — which is why they aren’t taxable. But there’s a reason you should report it when you file this year.
“If something got missed during the year, like the economic impact payments, you can make up for that on your tax return," said Mark Steber, chief tax information officer at Jackson Hewitt.
If you’re one of many Americans who never received stimulus money, this is your time to fix that through the Recovery Rebate Credit, as long as you’re eligible. You’ll have to file Form 1040 or Form 1040-SR to claim it.
For more information on the 2020 tax season, visit newsy.com/TaxingTimes.