Corona Virus Stimulus Check is not Taxable

Americans who met the requirements for corona virus stimulus check are in the process of receiving them. IRS has made around 159 million payments till now.

According to a source, due to the coronavirus pandemic, the US economy is weakening which is building pressure on officials to approve next round of aid for individuals and families.

The House of Representatives has proposed a second stimulus package already. The final decision will be made within a month. Senate Majority Leader Mitch McConnell has hinted that the coming stimulus package will be the final one. The senator is expected to start the work on the package soon.

People do have questions about the payment like whether it will be taxable or not. It has been cleared that no tax will be needed to be paid on a stimulus payment in 2020. It will not be considered as an income by the IRS and the 2020 payment will neither increase the refund nor reduce it when one files the 2020 tax return next year. The curiosity of people regarding when can you file taxes 2021 is also being heavily influenced due to this stimulus payment.

The receivers will not be required to give it to facilities like hospitals and landlords as the income is not taxable. But it is being speculated that the lawmakers are thinking of stopping this practice. The stimulus payment can be used and spent like cash and it will not count toward concluding the benefits received from the federal government.

The complete amount can be transferred to the savings account if it has been received on one of the prepaid debit cards. The only limitation is that the IRS will reduce the payment to offset past-due child support.

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