At Applegate Dillman Elder Law, many of our clients have called in with concerns and questions regarding their Coronavirus stimulus checks. To cut through the noise and get you reliable answers, we reached out to tax expert, Kim Storen of Storen Financial. Check below to see some of the most frequently asked questions!
Is my stimulus check really free money or will I have to pay it back?
No, you do not have to pay back the money you receive from your stimulus check. The stimulus money you’re getting is a credit on your 2020 tax return and the government is giving you this credit early.
But what if I make more than $150,000 in 2020? Will I have to pay it back then?
No, you still do not have to pay it back. Let’s say you are married and receive $2,400 in stimulus money, but in 2020 you make $200,000 or more. You still do not have to pay the money back because you already received the credit.
I did not qualify for the stimulus check, but my income will hurt this year due to the shutdown. Will I be able to receive money on next year’s tax return?
If your income in 2019 was too high to qualify for the stimulus check, but your income takes a beating this year, you should be able to qualify for the money based on your 2020 tax return. So, it’s important to keep track of the money you did or did not receive this year. Did you receive money? How much did you get? Did you get a reduced amount? All of this can be reconciled on your 2020 tax return.
My father passed away within the past year, but a stimulus check was still credited to this account. Will I need to pay this back on his behalf?
No, you will not have to pay this back. The stimulus check is credited based on 2018 or 2019 tax returns. If a parent or relative died in 2018 or 2019, they may still receive a stimulus check. This is yours to keep, it does not need to be given back.
If you have any further questions regarding taxes or your stimulus check, please reach out to Storen Financial at 317-852-7000 or firstname.lastname@example.org for more information.