Stimulus Update: Will You Have to Pay Taxes on Your State Stimulus Check?

Stimulus Update: Will You Have to Pay Taxes on Your State Stimulus Check?

In unwelcome news, millions of Americans must suddenly wonder if they will have to pay taxes on stimulus money sent by their state. Whether payments were a tax refund, tax rebate, or inflation check, no one can agree on whether they will be taxed. On Friday, the IRS released a statement saying that it's working with state tax officials to provide clarity for taxpayers.