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We've noticed inaccurate information being shared about the federal US stimulus checks for individuals lately. We wouldn't normally post about tax law nonsense, but a lot of people in our community may benefit from some clarification, so hopefully the following will help. (1/11)
Rumor 1: "The stimulus money is an advance of the 2020 tax refund you would have received. There is no net benefit; you're just getting some of your tax refund early."
FALSE. It is an advance of a new tax credit, so it's money you NEVER would have gotten otherwise. (2/11)
FALSE. It is an advance of a new tax credit, so it's money you NEVER would have gotten otherwise. (2/11)
More info: https://www.forbes.com/sites/advisor/2020/04/06/dont-worry-the-1200-stimulus-payment-wont-cut-into-your-tax-refund-next-april/ (3/11)
Rumor 2: "The stimulus money counts as taxable income."
FALSE. Technically speaking, the stimulus money is a tax credit (meaning that legally, it's considered sort of like a discount on taxes you would have otherwise owed). It is not considered income. (4/11)
FALSE. Technically speaking, the stimulus money is a tax credit (meaning that legally, it's considered sort of like a discount on taxes you would have otherwise owed). It is not considered income. (4/11)
More info: https://www.snopes.com/fact-check/covid-stimulus-check/ (5/11)
Rumor 3: "The amount of your stimulus check depends on your 2019 tax return."
Sorta. If you've filed your 2019 taxes already, your payment will likely be based on your 2019 income. If you haven't, your payment will likely be based on your 2018 income. (6/11)
Sorta. If you've filed your 2019 taxes already, your payment will likely be based on your 2019 income. If you haven't, your payment will likely be based on your 2018 income. (6/11)
However, in all cases, it's ultimately based on your 2020 income, so if you receive less than you should have based on that, you'll probably be able to recoup the rest when you file for 2020. It is unlikely that you'll have to pay back any overpayments. (7/11)
More info: https://www.forbes.com/sites/kellyphillipserb/2020/04/06/answers-to-your-most-commonly-asked-questions-about-those-tax-stimulus-checks/#3e7e8de11393 (8/11)
Final notes:
-All of the above information is about the "economic impact payments," which are the $1,200 (in most cases) stimulus payments being made directly to individuals. We're not talking about the SBA loans or any other parts of the CARES Act. (9/11)
-All of the above information is about the "economic impact payments," which are the $1,200 (in most cases) stimulus payments being made directly to individuals. We're not talking about the SBA loans or any other parts of the CARES Act. (9/11)
-We aren't making any political statement here. We're not endorsing or disparaging the stimulus package. We're just trying to provide information to people who need it. (10/11)
-All of this information is provided without warranty. We are not tax professionals. We're just a couple of people trying our best to put good information out there. Hope it helps! 
(11/11)
(11/11)
