Technically the payment is a refundable tax credit that qualifying Americans can apply to their 2020 tax bill, but the government is handing it out early.
A tax credit reduces your tax bill on a dollar-for-dollar basis. Refundable credits, like the stimulus payment, mean you can get cash back even if you don't owe anything.
Don't worry: The one-time payment won't reduce your tax refund. If you're owed one and you file your tax return, you'll still get the full refund as a separate payment.
Quote from Business Weekly Publication
