Is the COVID Stimulus Money Taxable? | How to Insurance | 060

Hi, I’m Peter!

Welcome to HOW TO INSURANCE

Helping YOU understand insurance, 

building CONFIDENCE for your future! 

Did you get your Stimulus check?

I sure hope so!

This past year has been very difficult for so many financially.

Hopefully, you qualified to get your stimulus check for the COVID relief that congress passed.

But is the money taxable?

The reason you’re asking this is… you know that your health insurance premiums and the advanced tax credits/subsidy you receive are based on your taxable income.

If you’re taxable income changes, you need to contact your insurance broker and update your health insurance application.

So now what?!?

The question you’re asking is:

Is the COVID Stimulus Money Taxable?

Answer = NO

The short answer: No.

However, the longer answer in the words of the IRS: “No, the payment is not income and taxpayers will not owe tax on it.

Also, there is other good news!

“The payment will not reduce a taxpayer's refund or increase the amount they owe when they file their 2020 or 2021 tax return next year.”

So what this means for your heath insurance is… you do NOT need to report this change of income. Therefore, it will not affect your insurance monthly premiums or tax credits.

However, watch out!

IF you are receiving Unemployment Income… both your regular weekly checks and any other additional weekly money that Congress has approved… this IS TAXABLE.

So make sure that you’re reported income on your health insurance application is updated to include any unemployment income. This is taxable!

Next Steps: 

1. Enjoy the stimulus money!

2. It’s not taxable, so you don’t need to report it on your health application.

3. However, report any unemployment income you receive.

Remember the goal is to have your reported taxable income on your health application, match (as closely as possible) your “Adjusted Gross Income” on your next year’s IRS tax return.

This will limit any money you need to pay back to the government (if you made more money than you reported).

At Apple Insurance Solutions,

We all want to protect what matters most to us in life, 

but finding the right insurance can be complicated. 

So I make it simple. 

As Your Insurance Broker, 

All your insurance is covered in one relationship,

saving you time and

building confidence for your future. 

If this was helpful to you, please: 

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Also, keep in mind, that as Your Insurance Broker,

I offer insurance for auto, home, life, health, medicare, umbrella, and business… when you work with me, all your insurance needs... are in one relationship.

Thank you for reading HOW TO INSURANCE

Helping YOU understand insurance, 

building CONFIDENCE for your future! 

PETER D JOHNSEN

Your Insurance Broker | Apple Insurance Solutions

818.620.8171 CA    360.818.4865 OR/WA 

peter@appleinsurancesolutions.com 

appleinsurancesolutions.com  

Auto | Home | Life | Health | Medicare | Umbrella  

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