The $600 direct payment or stimulus check included in the $900 billion bill is not taxable and will not be taken out of upcoming tax refunds.
FAYETTEVILLE, Ark — Claims circulating on social media suggest the direct payment most Americans would receive in the second COVID-19 relief bill would be taxed or deducted from tax refunds.
According to Certified Public Accountant Hillary Richards, that is false.
Richards explains the $600 direct payment or “stimulus check” included in the $900 billion bill or “stimulus check” is not taxable and will not be taken out of upcoming tax refunds.
Richards said when people see the IRS’ involvement in the payment there is often confusion.
“There is a lot of confusion surrounding this because the IRS is involved and when the IRS is involved people automatically think ‘oh I am going to have to pay taxes’,” Richards said.
According to Richards, the IRS’ involvement is to verify income and report that information to the federal government to allow accurate payments based on income and other qualifications like child dependents.