Finally, a pleasant surprise at tax time.
As you’re preparing for the start of tax season next week, you won’t need to worry about either the $1,200 or the $600 stimulus checks the federal government sent out amid the pandemic-driven economic calamity.
You don't need to add the amounts to your federal income tax return, since they don't count as gross income, according to the IRS website, meaning you won’t owe a penny on those stimulus funds. Presumably, should another stimulus check be in the mail in the coming months, that won't be taxed either.
If you haven’t yet received the full amount you’re owed for either stimulus payment, you can claim the rest on your 2020 tax return as a Recovery Rebate Credit. This includes people who did not qualify for the payments based on their 2018 or 2019 tax filing, but do on their 2020 filing.
The IRS will begin accepting 2020 tax returns on Friday, Feb. 12.