Blog

Now that the stimulus checks have started finding their ways into Americans’ bank accounts, it’s time to separate fact from fiction. Here are some common myths about the coronavirus stimulus checks.

MYTH: You Have to Pay The Money Back

TRUTH: You don’t have to pay this money back to the government. The money is for you to spend (or save, invest, etc.) however you want.

MYTH: The Money Will Be Applied to Taxes

TRUTH: The check will not be applied to pay for taxes no matter how much you owe. Just remember, you still have to pay your taxes. The deadline for federal taxes has been moved to July 15. Check with your state’s government site for information on its tax deadline. As Marketwatch notes, there is one exception about the application of the check: Child support. If you are behind on child support payments, the check will be used to pay that balance first.

MYTH: You Won’t Get a Tax Refund

TRUTH: This stimulus check has nothing to do with your tax refund. If you overpaid taxes during the year, you will get your refund. And you will also get your stimulus check.

MYTH: The Check is Taxable Income

TRUTH: Don’t worry: this check is not taxable income. That means the money will also not impact your eligibility to qualify for any government assistance programs.