The government sent out an unprecedented amount of money to help Americans deal with the Covid-19 pandemic. It is easy to tell if you received a payment, but it can be complicated to understand the finer details of the policy. Watch this video to learn about what the checks mean for your future tax refunds, who may have to repay the money and to see if you will be eligible for a potential second round of stimulus. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi
The IRS and Treasury Department issued more than $250 billion in stimulus payments to Americans at the start of the Covid-19 shutdown.
The checks were meant to give immediate relief directly to people and help boost the economy in the process, but the finer details of the program may be lost on some who received the payments.
One example is that the payments are technically considered a tax credit, but they will not affect your future tax returns, according to Garrett Watson, a senior policy analyst at the Tax Foundation. Some people were under the impression the checks were part of their tax refund.
The technicality helps the IRS and the Treasury Department issue payments with an existing system and calling the checks a credit streamlined the process, Watson said.
Check out this video to learn more about how the stimulus checks work and to see what we know about eligibility requirements for the potential second round of payments being debated in Congress.
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