CARES Act Stimulous payments

Forum|Forum|6 years ago
April 8, 2020
2 replies
0 views

Are the stimulous payments ($1,200/$2,400/etc.) considered as income for 2020 federal and state returns? If not, is this amount entered anywhere else on the 2020 return?

robtm

Level 10

As I understand it, the stimulus payment will be tax-free. It may be you have to enter it on the 2020 tax form but you will be given a tax credit for it. Have to wait and see if this is correct when they issue tax forms next year.

NCperson

Level 15

even better than that the stimulus payments are an ESTIMATE of what you are due using the 2018 or 2019 (whichever is available) to do that estimate.

Then when we all complete the 2020 tax returns in 2021, we will calculate the ACTUAL based on what is on the 2020 tax return.

if that actual is GREATER THAN what was estimated (eg your income was high in 2018 / 2019 and you didn't get a stimulus check, but low in 2020), you will get that additional rebate when you settle your 2020 tax return.

if that actual is less LESS THAN the estimate, you are not required, by law, to return the excess money.

xmasbaby0

Level 15

It will not be taxable. As for whether you will need to enter it on your 2020 tax return---guess we wait to see when we prepare and file 2020 tax returns next year in 2021.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**