Updated Tuesday December 1, 2020: Economic Impact payment, also called the Coronavirus Stimulus Payment, is a stimulus check issued earlier this year as the pandemic brought the country to a halt. As a reminder, this direct benefit is an advanced refundable tax credit for up to $1,200 for individuals, and $2,400 for a married couple, plus additional $500 for each dependent child.
What is the impact of the stimulus check on my taxes?
The stimulus payment is a tax credit and will not have a negative effect on the amount of refund you may receive when filing taxes. It is not counted as taxable income and it doesn’t have an impact on other tax credits that may apply to you. Additionally, this payment will not be counted as income when evaluating a person’s eligibility for federal programs or benefits.
Lastly, there are many inquiries from taxpayers who received the payment and whose situation might have changed during the year. For example, their adjusted gross income in 2020 increased over the threshold set up by the IRS. The IRS says that the law authorizing the stimulus does not have provisions for repayment of a payment already issued.
What if I missed the deadline to get the stimulus check?
Not all is lost if you didn’t receive the payment or the amount you received wasn’t the full amount. That second scenario impacted many taxpayers who were claiming dependents, and for one reason or another, didn’t receive the $500 for each qualifying child.
Per IRS Notice 1444, the only way to receive the stimulus, or claim the correct amount, is to file 2020 tax return in 2021.