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Check out this video to learn more about the implications the next round of stimulus payments will have on your 2021 taxes and to see how you can make sure you receive all the money you re.
How will stimulus check affect my 2021 taxes. The stimulus check is a separate payment outside of your tax obligations. First check your two stimulus payments against your 2020 adjusted gross income as well as your family situation. No your eip won t reduce your tax refund.
Your tax refund is money paid back to you because you overpaid your taxes during the year. The upside is that consumers whose earnings increase beyond the 75 000 and 150 000 thresholds won t need to pay back their stimulus checks tax experts say. And it s possible that consumers could.
Stimulus checks will have the opposite effect for those who are eligible to claim those payments when they file. Will my stimulus payment reduce my expected 2021 tax refund. That really will increase refunds on net on average for folks who are low or middle.
Because you re getting what amounts to a refundable tax credit now in the form of a stimulus payment rather than waiting to get the money from the credit in 2021 when you actually file your 2020 tax return you re in effect getting an advanced refundable tax credit.
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