Is the stimulus check a loan? Will I owe taxes on my stimulus payment?
By Karin Price Mueller | NJMoneyHelp.com for NJ.com
Stimulus payments from the coronavirus relief package are starting to land in Americans’ bank accounts, giving much-needed financial help to families.
Married couples who earn less than $150,000 will get $2,400, while singles will get $1,200 if they earn less than $75,000. Singles who earn between $75,000 and $99,000 will get a partial payment, as will married couples who earn between $150,000 and $198,000.
Parents with children age 16 and under will get an additional $500 per child, while older children who are claimed as dependents on someone else’s return will not get a stimulus payment.
Now that people are starting to see their money, they have been asking two important questions.
Here are the answers.
Is the stimulus payment a loan?
It’s not a loan. You will not need to repay the amount you get for your stimulus payment.
Will my stimulus payment be taxed?
“The stimulus payments are not taxable income,” said Bernie Kiely, a certified financial planner and certified public accountant with Kiely Capital Management in Morristown. “Think of them as a return of some of your taxes.”
Once you get your stimulus check, it is yours to keep, said Gail Rosen, a Martinsville-based certified public accountant.
“This is not an advance on your 2020 tax return,” she said. “Even if your income is higher in 2020, you will not have to pay this money back.”
We hope that’s a relief for worried New Jerseyans.
The IRS offers this tool to track your stimulus payment, but some people said they had problems with the tool.
If you have a problem with the tool, you can still use our stimulus payment calculator to see how much of a benefit you should expect.
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