Economic Stimulus Payment: Is It Taxable?

With the economic stimulus checks coming out earlier than originally scheduled, some may have already received their payments. Though I haven’t got my check yet (filed paper return on April 14th could mean a long delay), I did wonder whether I have to pay taxes for the “found money”. So I searched around a little bit and found the answer on IRS’s secondary FAQ page:

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment.

So basically IRS says nobody is going to pay taxes for the stimulus check. Regardless the actual amount received, the payment won’t increase your taxable income. However, as IRS has advised, it’s better to keep the paper, just in case.

BTW, IRS has a website to let you check the status of your stimulus payment, if you haven’t got it already. You will need your social security number, filing status, and the exact refund amount on your tax return.

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3 Responses to “Economic Stimulus Payment: Is It Taxable?”

  1. Kristin |  May 04, 2008 at 2:45 pm

    FYI – the IRS link is actually to check status on your tax refund, not the rebate.

  2. Sun |  May 04, 2008 at 9:03 pm

    Thanks Kristin! I guess I used the wrong link. Now the link points to the status of the rebate.