Will you owe taxes on coronavirus stimulus cash?
Cash should begin hitting direct deposit accounts at the beginning of next week
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Americans are eagerly anticipating economic stimulus payments from the federal government, which they are set to begin receiving as early as next week.
The checks will come from the IRS – but will you owe the agency back in the form of taxes?
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The short answer is no, you will not owe income taxes on the cash and do not need to include it as part of your taxable income on your 2020 return.
Therefore, it also will not affect the size of your refund.
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The payment is technically being structured as an advance on a temporary, refundable tax credit.
Additionally, if you make more money in 2020, you will not have to pay back any of the cash.
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Sources confirmed to FOX Business on Wednesday that cash should begin hitting direct deposit accounts at the beginning of next week. The IRS will begin sending out paper checks via mail the following week.
The payments will be $1,200 per adult for those with adjusted gross incomes of up to $75,000. The threshold for married couples is $150,000 – they are eligible for $2,400 and $500 per child.
The relief is intended to hold Americans over until the U.S. economy is up and running again – the federal government and state governments have made the decision to shut down many businesses in an attempt to limit human-to-human contact amid the coronavirus. As a result, many people have either found themselves without a job or with reduced hours.