Paying Taxes On Your Stimulus Check:  Get Your Tax Figures Right

stimulus check
stimulus check

A majority of Americans have received stimulus checks from the federal administration in the last two years. As we are in the middle of the tax season, we need to get things clear if we owe tax on any of the payments we received from the administration.

We begin with the third stimulus check that was credited to bank accounts starting March 2021. The $1,400 payment was followed by other benefits including the enhanced Child Tax Credit payments, the emergency SNAP benefit, and the boosted benefits for unemployment.

Most Americans received the $1,400 third stimulus check which will not be taxed. The IRS has categorically stated that the 3rd stimulus check payment will not be included in the gross income.

As such, it is not necessary to add the third stimulus check payment as part of the taxable income when you file the 2021 federal tax return. The last date for filing your returns is April 18, 2022.

Rumors On Internet Of Stimulus Checks Being Taxable Created Confusion

There has been some confusion created over the internet by citizens who felt they could be taxed for the third stimulus check. People should ignore such misinformation. So if the tax bill seems higher than normal, the stimulus payment is not one of the reasons.

Most families benefitted from the advance CTC payments, 50% of which were paid in monthly installments between July and December 2021. The payments ranged between $250 and $300 per child, as per the age of the child.

CTC payments are also not taxable. The refund this year will be less than average though, as you have already received anything between $1,500 and $1,800 per child as advance payment. So you will receive a smaller refund against your taxes as you have received part of it in advance. But you do not have to pay any income tax on the payment