In 2020, most taxpayers received “Stimulus Checks” or “Economic Impact Payments” from the Federal government for the 2020 tax year.
Both the first stimulus, sent in early 2020, and the second stimulus, sent at the end of 2020, are considered advance payments of a special 2020 tax credit known as the recovery rebate credit.
Your stimulus checks were an advance payment of this special 2020 tax credit. When we file your 2020 return, we will have to reconcile the stimulus checks you received with the recovery rebate credit you’re entitled to claim. For most people, the stimulus check payments will equal the tax credit allowed. In that case, your credit will be reduced to zero. If your stimulus check was less than your credit amount, the tax you owe will be reduced by the difference and you could even receive a refund. The stimulus check payments are not taxable. If you received more than you were supposed to receive, you do not have to pay it back. Christmas came early for you.
Please follow the link below to check the status of your Economic Impact Payments.