There is a lot of conflicting information regarding the stimulus checks going out to a significant amount of Americans. It is important to separate facts from speculation.
Some are wondering whether or not the stimulus checks, which top out at $1200 per taxpaying adult, will be subtracted from next year’s taxes. The simple answer is no. If in a normal year you typically receive a $1000 refund, then next spring you will still receive that amount. In other words, your tax refund, if you get one, and this stimulus are two separate and distinct piles of money. They simply don’t affect each other.
The IRS wants to do its best to make sure those who deserve it get this money, so they are qualifying people based on their most recently filed tax return. So, let’s say that you currently don’t qualify, but you lose your job this year or have a child. The IRS would then see if you qualify using next year’s tax return and retroactively pay anyone who qualified after the fact.
While there is much that is still uncertain and gray, it is unlikely that those who no longer qualify after the stimulus checks go out will have to repay the advanced stimulus. Stay tuned to IRS.gov to learn more information as it becomes available.