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Uncle sam is about to send most americans a check of up to 1 200 an out of the ordinary move that s leading some people to wonder if and how this seemingly free money will affect their tax refund next year.
Stimulus check a tax refund. That goes for the second. Because you re getting what amounts to a refundable tax credit now in the form of a stimulus payment rather than waiting to get the money from the credit in 2021 when you actually file your 2020 tax return you re in effect getting an advanced refundable tax credit. The recovery rebate credit will reduce how mucy you owe on 2020 income tax return or boost a tax refund that arrives sometime in march or later.
These stimulus checks which are part of the multi trillion dollar stimulus package passed in march and could arrive in taxpayer bank accounts as soon as april 15 are intended to ease financial hardships created by the coronavirus. Millions of second stimulus checks are on their way to americans. For the first stimulus check single filers and heads of household could have gotten up to 1 200 plus 500 for each qualifying child a person under age 17 who is claimed as a dependent.
How 600 stimulus checks and boosted unemployment benefits help the economy individuals who earn up to 75 000 will qualify for full payments as well as heads of households with up to 112 500 in. For example if you owed 1 000 in taxes but had a refundable tax credit of 1 200 you d get a 200 tax refund check from uncle sam.
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