Skip to content
DiSanto Propane (Banner)
Home » Valentine's Day » Is the third stimulus check going to impact my 2021 tax return?

Is the third stimulus check going to impact my 2021 tax return?

Three stimulus checks were sent after the start of the pandemic, with the third one being in 2021 under the Biden administration’s American Rescue Plan.

Some are wondering if this check will impact their 2021 tax returns next year. People also want to know if it counts as taxable income.

The stimulus check is considered an Economic Impact Payment, and those who received them did so based on their 2019 and 2020 tax return information.

Related: Everything you need to know about the IRS’ 2021 Plus Up Payments

Here’s everything you need to know about the third stimulus check and your 2021 tax return

Your stimulus check will not impact your tax refund because that’s money that is owed to you by the IRS. The stimulus check was a separate payment.

The stimulus checks are not an advanced payment on your tax refund like the child tax credit payments.

These payments were sent ahead of tax season as a way to help stimulate the economy that was suffering.

You do need to report your third stimulus check to the IRS when you file your taxes.

Related: What does someone’s “net worth” mean, and how do you calculate it?

Finger Lakes Partners (Billboard)

The government is treating the stimulus checks like advanced tax credits, so you do not need to pay income tax on them.

You will not need to pay the government back for your third stimulus check.

These checks were sent based on your income during the year, and if you fell within the approved income then you were sent a check.

The stimulus check will not impact benefits you receive like Social Security, nor will it push you into the next tax bracket.

Related: Are you getting the December child tax credit payment? You may need to pay it back

Categories: News