Question

2nd Tax Stimulus

Forum|Forum|5 years ago
March 7, 2021
1 reply
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I missed the deadline for 2019 and filed my taxes late so I didn't receive the second stimulus check. When I did my 2020 taxes I owed taxes and Turbo Tax applied my stimulus payment to my taxes owed. I thought the 2nd stimulus was exempt from taxes owed. How does this work, also will the next stimulus be applied to any tax I still owe?

Thanks

X

xmasbaby0

Employee

The stimulus money was an advance credit on your 2020 tax return. A credit is applied to pay toward your tax owed, so that's where it went if you owe on your 2020 tax return. The stimulus is not taxable income---you did not pay tax on it---it was just used to pay the other tax you owe.

We do not yet know all the rules and guidelines for Stimulus #3 since they are still wrangling over it in Congress and it has not yet been signed into law.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**