Stimulus checks started hitting bank accounts for the Americans that qualify. So there’s a good chance that by the time you’re reading this, the money you are due thanks to the CARES Act has already been directly deposited. But whether or not you’ve already received your money from the U.S. Treasury or are still waiting for it, there’s a good chance that you have some questions about it, both as it pertains to the long-term and short-term.
We’ve taken a look at some of the most popular myths out there about the stimulus checks and did our best to clear the air here. Here’s a look at some common myths, debunked:
Myth 1: I’ll have to pay taxes on the money I receive
Let’s be very clear about this: The stimulus money is not taxable income. Instead, think of it as a tax credit. And no, you won’t have to pay the stimulus money back when you file your taxes next year. It’s 100 percent your money.
Myth 2: It might take me weeks or months to get my money
This is only true for those who do not have a direct deposit on file with the IRS or for those who have yet to file their income tax return. The majority of Americans should have their stimulus money within the next week or two, but there may be a delay for some Americans.
Myth 3: I’m claiming Social Security, so I’m not eligible for stimulus money
Even those who are receiving Social Security benefits and may not potentially be as effected as working Americans right now are eligible for the stimulus money provided they meet the necessary requirements.
Myth 4: I may have to pay the IRS back if I was overpaid
The IRS will not ask for any money back as a result of stimulus payments. If you’re contacted by someone claiming you’ve been overpaid and the IRS wants a refund, it is likely a scam. Unfortunately, during times of crisis, scammers come out of the woodwork to prey on unsuspecting individuals.
Scammers are likely to contact you by phone asking for repayment. Keep in mind the IRS doesn’t call, text or email – it communicates through snail mail. If you believe you’re being scammed, report it to the Federal Trade Commission as soon as possible.
Myth 5: I won’t get my money until I file my 2019 taxes
The IRS recommends filing your 2019 taxes as soon as possible, but if you don’t file them in a timely manner, you’ll still get stimulus money. However, it may be delayed, as the IRS will be basing the amount you receive on your 2018 tax return instead. If you reported less income in 2018 and would qualify for a larger stimulus sum compared to your 2019 taxes, it’s likely worth the wait if you’re in a position where you can wait.
