Read on Twitter
We& #39;ve noticed inaccurate information being shared about the federal US stimulus checks for individuals lately. We wouldn& #39;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& #39;re just getting some of your tax refund early."
FALSE. It is an advance of a new tax credit, so it& #39;s money you NEVER would have gotten otherwise. (2/11)
FALSE. It is an advance of a new tax credit, so it& #39;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/">https://www.forbes.com/sites/adv... (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& #39;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& #39;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/">https://www.snopes.com/fact-chec... (5/11)
Rumor 3: "The amount of your stimulus check depends on your 2019 tax return."
Sorta. If you& #39;ve filed your 2019 taxes already, your payment will likely be based on your 2019 income. If you haven& #39;t, your payment will likely be based on your 2018 income. (6/11)
Sorta. If you& #39;ve filed your 2019 taxes already, your payment will likely be based on your 2019 income. If you haven& #39;t, your payment will likely be based on your 2018 income. (6/11)
However, in all cases, it& #39;s ultimately based on your 2020 income, so if you receive less than you should have based on that, you& #39;ll probably be able to recoup the rest when you file for 2020. It is unlikely that you& #39;ll have to pay back any overpayments. (7/11)
More info: #3e7e8de11393">https://www.forbes.com/sites/kellyphillipserb/2020/04/06/answers-to-your-most-commonly-asked-questions-about-those-tax-stimulus-checks/ #3e7e8de11393">https://www.forbes.com/sites/kel... (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& #39;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& #39;re not talking about the SBA loans or any other parts of the CARES Act. (9/11)
-We aren& #39;t making any political statement here. We& #39;re not endorsing or disparaging the stimulus package. We& #39;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& #39;re just a couple of people trying our best to put good information out there. Hope it helps! 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="😊" title="Smiling face with smiling eyes" aria-label="Emoji: Smiling face with smiling eyes"> (11/11)
