Key point: Stimulus payments are a vital lifeline and, as such, the federal government will not tax Americans for recieving them. Here are the details of how taxes and the law will work in regards to those checks.
The $1,400 checks that are currently being distributed as part of the American Rescue Plan, which passed Congress and was signed by President Biden in March, have been rolling out to Americans over the course of the last month. With April 15 coming up—even though the filing deadline has been extended to May 17—many people are curious how getting this payment will affect their taxes.
The good news is they won’t.
Per CNBC, none of the stimulus checks that have arrived in any of the three stimulus packages to pass since the start of the pandemic are taxable.
“No, the payment is not income and taxpayers will not owe tax on it,” the IRS said of the stimulus payments. “The payment will not reduce a taxpayer’s refund or increase…