Tax experts answer FAQ's about stimulus checks
Wisconsinites are starting to receive their federal relief payments under the $2.2 trillion coronavirus economic recovery bill, but some misinformation is spreading about whether we will need to repay the stimulus money.
There's some confusion going around about how the money will affect our 2020 taxes next year, so WBAY spoke with tax experts to answer some questions viewers have had.
"In the past when we had this, we asked that question on the tax return and we had to check the box if they go one and if they didn't, then it was adjusted on their refund, for 2020 as an example," says Debbie Woosencraft, a Tax Preparer for Precision Tax Solution in Green Bay.
Local tax preparers are still waiting on information about how to insert it all into tax paperwork, but the IRS has confirmed that households won't have to pay back the money in next year's tax filing.
"they're calling this an economic recovery rebate, and general rebates aren't taxable. If you get rebates, you know, from going to Menards, where they have the 11%, you don't have to include that in your income," says Jim Loebl, an Associate Professor of Accounting at UWGB.
For payouts, the federal government uses info from 2018 or 2019, whichever taxes you've filed most recently.
Right now, the IRS doesn't want you to call them about the Economic Impact Payment, they've put everything on their website in order to make it easier for all of us.
Under the coronavirus section, there is an area where you can click on that says "Get My Payment", so you can track where your refund is.
According to the U.S. Treasury Department, there is no obligation to pay it back because it's tax free - it's treated as a credit for you from the federal government.
The IRS tells WBAY information is always being added, and its website is the best source for accurate information.