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VERIFY: No, stimulus payments aren't taxed

Second stimulus checks are being deposited into bank accounts as we speak, and people like you have been asking us if it is taxed.

MACON, Ga. — The second round of stimulus checks are making their way into checking accounts across Central Georgia. 

Pamela Johnston of Macon-Bibb County said, "We are saving it. We have been fairly blessed not to have suffered too much from the pandemic."

Johnston received her second stimulus payment not too long after filing her taxes. Others are still waiting, but questions are pouring in from people asking if their second stimulus payment is going to be taxed. So, are they? We set out to verify.

Clifton Lipford Hardison & Parker CPA, Terry Parker said no.

"No, this is a tax-free benefit to each recipient," Parker said. "You don't pay tax on it."

He said it's a prepayment towards a credit, so there is no tax owed on it. The IRS website also says the payment will not reduce a taxpayer's refund or increase the amount they owe when they file their 2020 tax return next year, but what about unemployment compensation?

Parker said, "Well, if you received unemployment compensation, that is a taxable event to each recipient."

So how can you check the status of your stimulus money? 

"Most payments are being down electronically. You can check with your bank and see if it has ben deposited, or you can also look at IRS.gov to see if they made a stimulus payment to you," said Parker.


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