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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsquestion about if stimulus funds are considered income
I have a question about whether covid relief stimulus funds should only be sent to people who need them.
Are Stimulus funds considered to be income? If so, on next year's federal taxes, for those people with higher incomes, does the higher tax rate basically recoup the $2000 which was sent to them? Hence, in the long run the people who need the stimulus get it and those who don't need it, pay it back in their federal taxes?
This question came up at a recent dinner party.
doc03
(35,295 posts)Wounded Bear
(58,598 posts)State laws may vary, however.
Turin_C3PO
(13,909 posts)rhiannon55
(2,671 posts)helping people sign up for for "Obamacare". When we put in their income to see if they qualify for a tax credit to offset the cost of their monthly premiums, we have been told not to include stimulus checks. Apparently, they are not taxable; tax credits are based only on taxable income.
Shermann
(7,399 posts)Hoyt
(54,770 posts)Mattgoetznolovefromm
(2,278 posts)perhaps you don't understand tax brackets. A higher bracket does not mean all your income is taxed at the higher rate.