Huntsville tax specialist explains your coronavirus stimulus check

WAAY-31 spoke with a tax specialist about why you don't have to pay your stimulus check back

Posted: Apr 17, 2020 8:28 PM
Updated: Apr 17, 2020 11:49 PM

The federal government says millions of people should receive their stimulus checks this week!

But some expressed concerns with actually spending it, and whether it'll impact your tax filing or next year.

The $1,200 you get in your bank account is yours to keep and, no, you don't have to pay it back.

A tax specialist told us he's heard the rumors and assured me this is a tax credit, not a tax loan.

"It'd be the same as the government giving you a bigger refund later and the law said it's just a credit. But they've chosen to go ahead and give you and the taxpayers the money, now," said Mark Holman, a certified public account.

He explained to WAAY 31 the stimulus check people are getting is called an "advanced credit" and the credit word is what's confusing people.

You don't have to pay the money back and it won't impact your tax filing next year.

It's an "economic impact payment" given to Americans hurt by the coronavirus outbreak.

To get it, the IRS used your most recent tax filing records and Holman told us he's heard the rumors of people having to pay it back but it's just not true.

"It's not going to be taxable. It's not going to increase your taxable income and you will not have to pay it back. That's the bottom line," he said.

He said there are some cases where people will have to pay it back...but they have to do with errors on sending the money out.

It's if you receive double the amount or get the $1,200 when you weren't supposed to then you have to pay that money back next year when you file.

But all in all... He believes North Alabama will be okay once this is all over.

"The economy will bounce back really well. I think it's going to take a minute... It's not going to bounce back like next week. We're still going to have issues," he said.

Holman told WAAY 31 if you do not receive your $1,200 you can claim it on your taxes and get that money in a full refund... not taxed.

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