Are stimulus checks taxable?

Citizens have seen a surge of stimulus money come into their accounts thanks to the American Rescue Plan Act.

The landmark bill was passed on March 11, 2021 with 220 to 211 votes.

All Republicans and one Democrat, Representative Jared Golden, voted against the bill.

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Is the stimulus check taxable?

President Biden’s Covid relief bill included a new round of stimulus checks worth $1,400 to get the US economy moving.

However, cash was phased out for individual taxpayers who earned $75,000 a year.

Once you hit the $80,000 annual gross income (AGI) limit, you weren’t eligible for the help at all.

Moderates forced tightened eligibility for couples hoping to obtain stimulus checks, which was phased out completely at pairs making $160,000.

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However, those that fit the bill received $1,400 if they were single, and $2,800 if they were in a married couple.

This also meant that a family of four saw a package of up to $5,600.

Neither of the two previous stimulus checks delivered in 2020 were considered taxable, and according to the IRS, the third check wasn’t taxable either.

″…the Payment is not includible in your gross income. Therefore, you will not include the Payment in your taxable income on your Federal income tax return or pay income tax on your Payment,” the website read.

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“It will not reduce your refund or increase the amount you owe when you file your Federal income tax return.”

The payment will also not impact eligibility for federal government assistance or benefit programs.

What did Biden say about passing the bill?

Signing the bill on March 11 last year, President Biden said, “this historic legislation is about a fighting chance.

“Tonight, and the next couple of days, I’ll be able to take your questions,” he told reporters. “But in the meantime, what I’m going to do is sign this bill and make the presentation tonight.

“Then there will be plenty of opportunities to be on the road not only talking about what I’m talking about tonight, which is the impact [of] the virus and how to end this pandemic.

On Twitter, Biden went on to say that 85 percent of American households would get direct checks from the American Rescue Plan.

A survey a year out found roughly 84 percent of Americans received the checks.

“For so many Americans, that means they can pay the rent. That means they can put food on the table.”

This post first appeared on thesun.co.uk