The next round of government authorized stimulus went through December 28, 2020 for $600. While many are excited for this economic relief, there are many questions.
Who is eligible?
Individuals who make an adjusted gross income below $75,000 are eligible for $600. Married couples who file jointly with an adjusted gross income below $150,000 are eligible to receive $1200, and an additional $600 for each child claimed as a dependent under the age 17. American’s who receive Social Security payments for either disability or retirement, Supplemental Security Income, and veterans who have not had to file a tax return recently will receive their stimulus the same way they received the first round1.
Is the stimulus check taxable income?
No, you do not need to claim your stimulus check on your taxes; therefore, the stimulus check will not lower your tax refund and you will not need to pay taxes on it2.
How is this money going to be paid back?
While it feels great having extra money hit our bank accounts, there is still much concern about what this stimulus means for individuals. There has been frustration that the U.S. has given so much economic relief to both foreign countries as well as big business, pushing the country into greater debt3. Many wonder what this means for all Americans. Well, we could say that no money from the government is free, and it will likely be paid back in future years through taxes. However, right now there is little information released to the public about how these funds will be repaid.
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