OKLAHOMA CITY (KFOR) – Stimulus checks started rolling out just a few days ago. But there’s still some misinformation about paying these checks back and also whether it’ll affect next year’s taxes.
“This money is not taxable. This money is just what it sounds like. It is economic relief,” said Rachel Pappy, attorney and Polston Tax co-owner.
Pappy broke down how the government’s stimulus checks work for you.
“You can use this money, it’s your money, on anything you want. Honestly, there are no parameters on the stimulus check,” Pappy said.
Pappy says you will not later be taxed on the money you receive on your stimulus check. Also meaning it won’t have any bearing on your income deductions next year.
But it’s not essentially free money.
“This money is from the government. The government receives money from the public through tax dollars. So, eventually the public will be paying for the stimulus money that we’re getting now,” Pappy said.
She says the stimulus checks are labeled as a tax credit in the bill. But this money is in addition to what you would receive, even if you owe taxes for 2020.
“The tax credit is being treated as if everybody had filed in on their 2020 return. They don’t owe taxes and it’s in addition to whatever refund they would get,” Pappy said.
If you haven’t gotten your check yet and your tax returns are already directly deposited to you, the stimulus money will also be deposited automatically into your bank account.
Pappy says even if you owe money for 2018 or 2019, don’t let that stop you from filing your taxes. You will still get a stimulus check whether you owe money of not.
“This money, this stimulus money is literally intended to keep the gas in our economy,” Pappy said. “The government wants this money in the pockets of people so that they don’t have to have fear. They can have a little bit of hope.”