How Will Your Stimulus Check Affect Taxes on Social Security Benefits?

While U.S. citizens are relieved to receive something during such a critical time, many are questioning whether there will be a second one and if it will affect their taxes on social security benefits. Not to worry, though, since the coronavirus stimulus money was an advance on a tax credit, it will not mess with those on social security. According to fool.com, since most received the tax credit now instead of when filing for their 2020 tax returns next year, it’s not considered to be countable income.

While there have been a lot of questions surrounding a possible second stimulus check, Americans have also wondered who will qualify and who won’t if a second one were to be distributed. While there was quite a bit of confusion surrounding the CARES Act, which was responsible for the first stimulus check, the HEROES Act is looking to eliminate any question and provide more money for more families across the nation. If someone is on SSI or SSDI, they will likely be given a stimulus check if a second one is distributed, according to Forbes. Unlike through the CARES Act, the HEROES Act is abiding by a set of new rules.

As far as actually receiving another payment, while it has not been formally announced, President Donald Trump did reveal that there will be a second stimulus check, but did not reveal any further details other than it would be “very generous.” “Yeah, we are. We are,” he told Forbes as a response when asked if U.S. citizens would be given a second check. “We had this going better than anybody’s ever seen before. We had the best job numbers, the best economics, the best economy we’ve ever had, and then we had the virus come in from China. Now, we’re rebuilding it again. We will be doing another stimulus package. It’ll be very generous […].” When he was asked how much specifically and when citizens might hear more, he said, “You’ll find out about it. You’ll find out.”

The HEROS Act was passed by the House of Representatives and forwarded to the Senate for deliberation. If passed, the new stimulus package would offer more individuals living in the United States an opportunity to receive a check. Through the CARES Act, each person receiving had to be a taxpayer and be identified through a social security number. Through the HEROES Act, those who did not qualify before would qualify now under those specific categories.