Are stimulus checks taxable?
CITIZENS have seen a surge of stimulus money come into their accounts thanks to the American Rescue Plan Act.
The landmark bill was passed on March 11, 2021, with 220 to 211 votes.
All Republicans and one Democrat, Representative Jared Golden, voted against the bill.
Are stimulus checks taxable?
President Biden’s Covid relief bill included a new round of stimulus checks worth $1,400 to get the US economy moving.
However, cash was phased out for individual taxpayers who earned $75,000 a year.
Once you hit the $80,000 annual gross income (AGI) limit, you weren’t eligible for the help at all.
Moderates forced tightened eligibility for couples hoping to obtain stimulus checks, which was phased out completely at pairs making $160,000.
However, those that fit the bill received $1,400 if they were single, and $2,800 if they were in a married couple.
This also meant that a family of four saw a package of up to $5,600.
Neither of the two previous stimulus checks delivered in 2020 were considered taxable, and the third check wasn’t either.
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This is because they weren’t part of your gross income and, as such, couldn’t be taxed.
It also didn’t affect the amount you may have owed or reduced your tax refund when you filed your 2021 taxes.
The third stimulus check was issued as an advance recovery rebate tax credit for the 2021 tax year.
If you didn’t receive the third payment or if your check was less than what it should’ve been based on your income, you should’ve received the amount you were owed when you filed your 2021 taxes.
What did Biden say about passing the bill?
Signing the bill on March 11 last year, President Biden said: “This historic legislation is about a fighting chance.
“Tonight, and the next couple of days, I’ll be able to take your questions,” he told reporters.
“But in the meantime, what I’m going to do is sign this bill and make the presentation tonight.
“Then there will be plenty of opportunities to be on the road not only talking about what I’m talking about tonight, which is the impact [of] the virus and how to end this pandemic.
On Twitter, Biden went on to say that 85 percent of American households would get direct checks from the American Rescue Plan.
A survey a year out found roughly 84 percent of Americans received the checks.
“For so many Americans, that means they can pay the rent. That means they can put food on the table.”
To offset the current inflation, millions of Californians will be receiving checks from an October date.
Plus, relief checks are going out to West Virginians.