People are still wondering that either they have to pay tax for this check or it is tax-free. The simple answer is, you do not have to pay tax for a Stimulus check. According to IRS Official Statement, Stimulus check is not a part of the income of an individual or organization. This is paid back to taxpayers by Govt. with an aim of relief so, IRS does not ask for tax on your stimulus checks.
IRS Stimulus Check Examples
As we all know this check is paid by the US Govt. to give relief to taxpayers so, below are the two examples from the history when US Govt. paid stimulus checks Financial Crisis 2008 – In 2008, the US faced a financial crisis caused by deregulation of the financial sector. At that time, US Govt. issued stimulus checks for low-income families. Coronavirus Relief – In March 2020, once again the bill of stimulus has been approved and Govt. announced to pay $500 per qualifying child and $1,200 per adult. Individual filer having $75,000 income per year and joint filers with $1,50,000 income per year are not qualified for this check.
Is the Stimulus Check Taxable?
You have got the answer to the primary question that you was searching for. But, I am sure there will be some more questions in your mind that you would like to know.