GREENSBORO, N.C. — All. The. Stimulus. Questions. There are so many. One of the most common questions is, “Will people who owe money to the IRS still get the stimulus check?”.
The short answer is, yes. Financial expert Scott Braddock explains, “regardless of what you owe the state or federal government in taxes, you will not see your stimulus money reduced. Even if you owe student loans, you will get the full amount without being reduced.”
The IRS is only garnishing the stimulus payment if you owe back child support. In that instance, the stimulus payment will go directly towards paying that back child support back.
DOES THE STIMULUS COUNT AS INCOME?
The question is answered in the IRS FAQ page. Question 19 is: is the payment [included] in my gross income?
The answer is no. The IRS explains the payment is not income, and a stimulus check recipient won't owe tax on it. It won't decrease the refund amount or increase the amount owed on the 2020 tax return.
It also cannot bump someone to the next tax bracket and cannot cancel eligibility for federal government assistance or benefit programs, like SNAP or EBT.
It also will not affect taxes currently owed to the IRS. There is one exception -- if someone is past due on child support.