STATEN ISLAND, N.Y. -- Whether you already received your second stimulus payment of up to $600 or you’re still waiting for a check, you might be wondering if you have to pay taxes on it.
The good news is both stimulus payments -- including the first payment of up to $1,200 per person -- are actually not taxable. That’s because they are considered tax credits -- not income.
So you won’t have to report them on your 2020 tax returns, according to the IRS.
The second round of stimulus checks is generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.
While many Americans already received an initial direct deposit payment, paper checks began to be mailed on Dec. 30.
FREE FILE TO GET STIMULUS PAYMENT
If you qualify for the second stimulus payment and have yet to receive it or if you never received the first stimulus, the IRS recommends you file a tax return to get the money.
IRS had until Jan. 15 to send out all second stimulus payments.
For those who have yet to get the payment authorized by the newly enacted COVID-relief legislation, the IRS opened up Free File, free online tax preparation products, on Friday. Now, taxpayers can claim a credit that will help them get their payment.
“IRS Free File providers will accept completed tax returns and hold them until they can be filed electronically once the IRS begins processing returns,” the IRS said. “The Free File Fillable Forms, the electronic version of IRS paper forms, also will be available later when the filing season begins. This product is best for people comfortable preparing their own taxes and is safe and secure.”
IRS Free File provider sets eligibility rules for products based on age, income and state residency. Americans who earn less than $72,000 a year will find at least one product for which they qualify, according to the IRS.
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