How does it work?

"The stimulus check is not counted as taxable income. Instead, it acts as a credit against 2020 income taxes. This is similar to the previous two iterations of section 6428 that we saw during the Economic Growth and Tax Relief Reconciliation Act in 2001, as well as the Economic Stimulus Act just before the 2008 recession.
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In essence, the stimulus check acts as an advance of your 2020 income tax refund. This means when you prepare your 2020 income tax return, there will be a line to include the section 6428 credit. The credit on your 2020 return is subtracted by any amount received as a stimulus check in 2020. If the amount you received as a stimulus check is less than the credit you are due, the difference will be included as part of your 2020 refund. If you have been overpaid by receiving the stimulus check, however, you will not be required to return any excess amount."

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