Economic Impact Payment known as Stimulus Check versus California EDD UI and PUA
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Author: Andrew Lee
About 2 minutes read.
DISCLAIMER: Author is not a tax advisor nor tax professional. All materials and references below are interpreted as-is and is only used for general information purposes and not for tax advise. Please consult with a qualified tax professional before following any information here.
In case you are still wondering whether you need to pay tax on the stimulus check. The answer is no, and it also "will not affect your income purposes of determining eligibility for federal government assistance or benefit program".
According to IRS, the stimulus check you receive will not impact your gross income and you do not need to include in your tax filing.
"No, the Payment is not includible in your gross income. Therefore, you will not include the Payment in your taxable income on your Federal income tax return or pay income tax on your Payment. It will not reduce your refund or increase the amount you owe when you file your 2020 Federal income tax return."
"A Payment also will not affect your income for purposes of determining eligibility for federal government assistance or benefit programs."
But, what about the California EDD Unemployment Insurance (UI)? Yes, you will receive a 1099-G form and the amount received is considered taxable compensation. Unemployment compensation is taxable, and according to this, the followings are all taxable UI:
- UI benefits
- Disability Insurance (DI) benefits received as a substitute for UI benefits
- DisasterUnemployment Assistance (DUA) benefits
- Paid Family Leave (PFL) benefits
References
https://www.irs.gov/coronavirus/economic-impact-payment-information-center#returning
https://edd.ca.gov/unemployment/Get_Tax_Information_(Form_1099G).htm
https://edd.ca.gov/unemployment/FAQs.htm
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