Is 2020 Stimulus Check Just an Early 2020 Tax Refund?

Lowcash2012 · ‎April 1, 2020

During the Bush era stimulus, the stimulus check was just an "early tax refund"--I ended up having to pay some of it back the following tax year. It was basically a government shell game--I didn't really get more money, I just got some of the money sooner, and had I known I wouldn't have spent it. It hurt me more than helped and I am still angry about that.

This time around I do have dependents and tax credits I normally get. So, is this going to be the same deal? Say I get $2900 next week, will I then NOT get my regular set of credits and get a smaller (or no) refund next April? If so, what is the big deal--Because the Stimulus is a Zero Sum gain for me (and most American's really).

Am I missing something?

VictoriaD75 · ‎April 1, 2020

You can find more information on how the stimulus package will work through the information below:

Coronavirus Tax Update

What do I need to know about the coronavirus stimulus package?

IRS Coronavirus Tax Relief

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Lowcash2012 · ‎April 4, 2020

Thanks, but none of these sources answered my question. If I get a 1200 check, will this mean I will get 1200 less in my tax refund when I file next April? If so I am going to stick in the bank and no economic stimulus will occur. I am not going to spend it if I will just lose it next year.

ColeenD3 · ‎April 4, 2020

Not exactly. It is an advance tax credit.

From Business Insider:

What is a coronavirus stimulus check?

The payment — which the IRS is calling an "economic impact payment," the government has named a "recovery rebate," and many people are calling a "stimulus check" — is technically an advance tax credit meant to offset your 2020 federal income taxes.

@Lowcash2012