WASHINGTON — Tax season has brought with it a slew of tax misinformation.
On social media, some people are saying that millions of Americans are about to be hit with taxes on the third Economic Impact Payments, otherwise known as "stimulus checks."
We took the question straight to the experts to verify.
THE QUESTION:
Do you have to pay taxes on the third stimulus?
THE SOURCES:
- Luis Garcia- IRS spokesperson
- Henry Grzes- lead manager on tax practice and ethics, Association of International Certified Professional Accountants
- IRS website- "Questions and Answers about the Third Economic Impact Payment"
THE ANSWER:
No, the third stimulus check is not considered taxable income.
WHAT WE FOUND:
Our Verify sources say that this claim is false: none of the stimulus checks are considered taxable income, so you don't have to pay taxes on them.
"No, the Third Economic Impact Payment is not includible in your gross income," the IRS writes. "Therefore, you will not include the third payment in your taxable income on your 2021 Federal income tax return or pay income tax on the third payment."
Grzes explained that your tax refund won't be lower if you received the check.
"If you received the correct amount of your stimulus amounts or even if you received more than what you should have received, the stimulus payments had no impact on your refund or balance due as calculated in your tax return for 2020 or 2021," Grzes said.
If you never received your third stimulus, and are eligible, then you can claim a Rebate Recovery Credit on your 2021 taxes to get the stimulus retroactively.