Question

If people have to claim their stimulus on their taxes. Will taxes be taken out of the stimulus money/credit?

Forum|Forum|5 years ago
January 7, 2021
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TurboTax Deluxe Online

Employee

Since the Treasury gave you the money, you won't have to report it as income when you submit your 2020 returns and you will not be taxed on any part of it. Since your coronavirus stimulus money isn't counted as income, it not only isn't taxable but it also doesn't affect your eligibility for any other tax savings.

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Critter-3

However, even though it is not taxable income the amounts you did receive do need to be entered in the program for a reconciliation ... if you got too much you get to keep it tax free, if you got too little you get more and if you got just the right amount you are even. That section of the 1040 is currently not operational and until it is no one can efile their return.