This new law is now two days old, and so far everyone has been talking about the economic stimulus check provision as if it is a refundable tax credit like the earned income credit. But reading the language of relevant section of the act, I'm not so sure about that, and it seems like this will be a nonrefundable credit on the 2020 tax return, meaning people who get the check but wind up paying little or no tax for 2020 may have to pay it back in 2021? See below:
"SEC. 6428. 2020 RECOVERY REBATES FOR INDIVIDUALS.
“(a) In General.—In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for the first taxable year beginning in 2020 an amount equal to the sum of— ..."
Maybe there's a loophole that I'm missing which says that an overpaid advance credit won't have to be paid back, or some other technicality that makes it actually a refundable credit. How are others reading this provision?
