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Your federal income tax returns play a significant role in determining if you qualify for a stimulus check and if you do the size of the check the irs will send you.
Stimulus check is tax refund. Is the stimulus payment an advance on my tax refund. If you received any stimulus check or got a direct deposit of economic impact payments eip or through a stimulus eip debit card a question may hover if the payment will actually increase your tax or reduce your expected tax refunds during the year 2021. That goes for the second.
The stimulus check is a separate payment outside of your tax obligations. A refundable tax credit like the american opportunity tax credit or earned income tax credit. The plain and simple answer to that question is that stimulus payments are tax free.
Millions of second stimulus checks are on their way to americans after congress authorized. No your eip won t reduce your tax refund. The stimulus payment is cut by 5 for every 100 of income earned above the thresholds.
Admittedly some people might prefer to receive a 600 check and have to pay 500 to the irs separately. For example a couple earning more than 174 000 won t get a second stimulus payment that compares with the. These are the ones the government will give you a refund for even if you ve hit net zero and don t owe anything.
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