Your Stimulus Tax Questions Answered
The Internal Revenue Service (IRS) sent out more than 160 million stimulus payments in the first round since the CARES Act was signed into law in 2020. You might have wondered: How will this affect my taxes? Here are answers for some frequently asked questions, courtesy of the IRS.
Is my stimulus payment taxable?
According to the IRS: “No, the payment is not income and taxpayers will not owe tax on it. The payment will not reduce a taxpayer's refund or increase the amount they owe when they file their 2020 or 2021 tax return next year. A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs."
If I didn’t get my stimulus payment(s) Is there any way to get it?
Yes. If, for some reason, you did not receive your stimulus payment last year, but you qualified to get one, you can get it this year when you file your 2020 tax return with the Recovery Rebate Credit. If you only received a partial amount of what you were entitled to in 2020 — you could also get the outstanding amount you’re owed from your 2020 tax return.
I don’t normally file a tax return, but I received the first round payment. Do I need to do anything to receive additional rounds?
No action is necessary for you to receive the second payment. Your payment will be issued based on information the IRS has on file for your 2019 tax return, the information you provided on the - no longer available - IRS Non-Filers tool, payment information entered on the Get My Payment tool, or information provided by a federal agency that issued benefits to you (Social Security Administration, Veterans Affairs, or Railroad Retirement Board).
If you don’t get a payment and you are eligible to receive one, you may be able to claim it on your 2020 tax return as the Recovery Rebate Credit.
Is there a tool to help those who are not required to file a tax return get a stimulus payment if they’re entitled to one?
There was, but it has been discontinued by the IRS. If you are entitled to a stimulus credit but did not receive one, you will have to file a tax return in order to use the Recovery Rebate Credit.
Will my second stimulus payment be affected if I owe a federal tax liability or other federal debts?
Will my stimulus payments be affected if my spouse or I owe past-due child support?
Will BancorpSouth notify me if/when I get stimulus payments?
BancorpSouth Online and Mobile Banking offer you the option to set up custom notifications. You can be notified any time a deposit is made into your account. We will normally not notify you about deposits unless you have set up such notifications.
With the MyBXS mobile app, you can also check your deposits at any time or place on your smart device.
For more information or more specific questions about federal stimulus payments or federal taxes, visit IRS.gov.