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?
You can find more information on how the stimulus package will work through the information below:
What do I need to know about the coronavirus stimulus package?
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.
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.