This article was last updated on August 5
The answer is No. According to the IRS website – “The (Stimulus Check) Payment is not income and you will not owe tax on your Payment. It will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year. The will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs.“
2021 Stimulus Check Filing Considerations For Your 2020 Tax Return
Many people have asked if they will need to repay their stimulus check payment if their 2020 tax return income was higher than the eligibility thresholds. The IRS has confirmed that individuals who qualified for a payment based on their 2018 or 2019 tax returns DO NOT need to pay back all or part of the payment even if they no longer qualify for that amount or would qualify for a lesser amount based on their 2020 tax return.
What if my Dependent turned 17 in 2020? Would I still get the $500 payment?
If you received the $500 supplementary child stimulus payment for your child who, based on your 2018 or 2019 tax return, met the qualifying child requirements. That child turned 17 in 2020 and no longer meets the qualifying child requirements. You will not be required to pay back the $500.
Similarly if you received $500 for your child whom you claimed on your 2018 or 2019 tax return but are no longer claiming the child on your 2020 tax return because the child’s other parent claims the child, you will not be required to pay back the $500 even if the child’s other parent claims $500 for the same child on his or her 2020 tax return.
Also make sure you keep Notice 1444, Your Economic Impact Payment, with your 2020 tax records. The IRS will mail Notice 1444 to your last known address within 15 days after the Payment is made.
For the most up to date information, go to the source – The IRS Economic Stimulus Payments Information Center – where you can get all the information and frequently asked questions on the stimulus you could ever need.