Tax preparer asking if we received stimulus?

You got a loan from the government that may or may not have to paid back.

Sounds incredibly dumb, right?

I'm an OT poor, so I'm filing my own taxes. I use freetaxusa.com, and at one point they ask how much I received on the third COVID 19 economic impact payment. If you didn't receive the full amount (because your income was too high in 2019 or 2020), you may be eligible to receive the difference. I'm not sure if it's as a tax credit or what the criteria is to qualify for the difference.

Also, freetaxusa said it needs to match what the IRS already shows because I guess that's one thing they are checking closely, and if they don't match, your review will be delayed.

Here's a link about the 3rd economic payment.

Here's a link to log in to the IRS website where it will tell you how much they show you received.

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Why is my tax preparer asking me if and how much stimulus we received?

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It was an advance on a tax credit. If you didn’t get what you were owed they will give it to you as a tax credit.

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Do we have to claim it as earned income?

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No

Same routine as 2020.

If you didn’t receive the stimulus but you should have based on your tax return, you get a credit towards your taxes.

If you received it but shouldn’t have, nothing happens. You get to keep the money.