Will The Coronavirus Stimulus Cut Into Your 2021 Tax Refund?
The internet is causing all sorts of stress and concerns over the Coronavirus Stimulus, and if it will affect your 2021 tax refund. Will it cut into your refund at all?
SIMPLE ANSWER- No.
Will the government is taking away my refund next year (2021)?
Forbes reports that the answer is no.
Bottom line: your 2020 tax return and any refund you’re due when you file that return in early 2021 will not be affected by the check you’re getting now. Assuming you get the full stimulus payment now, you won’t get it again, No double dipping. "
The stimulus checks are nontaxable. Forbes points out that they will not be included in your 2020 income.
They’re officially addressed in the CARES Act as a “Recovery Rebate for Individuals.” These payments won’t push you up into the next tax bracket for 2020 taxes, if you’re already on the edge. "
So there you go. Rest easy, and be safe.