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Local 5 - weareiowa.com | Des Moines Local News & Weather | Des Moines, Iowa

Stimulus money will not be taxed according to IRS

The IRS says that stimulus payments are not income so taxes will not be owed on them

DES MOINES, Iowa — The IRS, in 2020, sent out more than 160 million stimulus checks and millions more people are getting their second round of checks now.

There are still plenty of questions to answer regarding the checks. One question posed to us is will Iowa tax on the stimulus money?

According to the IRS website the answer is no. The payment is not income and taxpayers will not owe taxes on it.

The payment also won't reduce your refund or increase the amount you owe when you file your tax return this year.

One thing to remember is, if for some reason you didn't get either stimulus payment, but you are owed one, you can still get the money this year when you file for a 2020 tax return