Stimulus checks are not considered taxable income by the IRS and any changes made to your payment will only work in your favor according to tax expert Lisa Green-Lewis. If anything, the IRS may end up giving you more money back next year if there were any mistakes made. Watch this video to learn more about how the taxes will work on any future stimulus checks and to see how you might’ve been underpaid last time. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
The first round of checks was technically a rebate based on your latest filings with the IRS. You do not owe taxes on the money and will not be required to pay anything back. Even better, the IRS may give you more money next year if it finds you were underpaid, according to tax expert Lisa Green-Lewis.
“If you receive too much of a rebate check, you won’t have to pay anything back. If you receive too little, you will get more back in the form of a tax credit,” Green-Lewis said.
Underpayments most likely resulted from not getting credit for all of your dependents, according to Green-Lewis. Check out this video to learn more about the implications the next round of stimulus payments will have on your 2021 taxes and to see how you can make sure you receive all the money you’re entitled to.
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