Stimulus check and taxes: laws impacting this year's tax return

Stimulus checks are not taxable income, so people do not have to pay taxes on funds they have already received

Photo: Nataliya Vaitkevich / Pexels

The multiple coronavirus aid packages signed into law include a number of tax-related provisions, including several that households should know when filing their returns .

Mark Steber, director of tax information for the tax preparation company Jackson Hewitt, reported that “three tax bills were passed in 2020 and after 2020 that affected all taxpayers. ”

The stimulus and aid law enacted by former President Trump and this year by Joe Biden included provisions that are no longer taxable in areas including stimulus payments, unemployment benefits, and charitable contributions.

For the above, people can use their returns tax of 2020 to claim the money from the stimulus payment to which are entitled , but have not yet received.

Coronavirus relief laws have provided for three rounds of payments. In each case, people with incomes up to $ 75, 000 and married couples with income up to $ 150, are eligible for full payment amounts, amounts are reduced above those thresholds .

Legislation enacted in March provides for payments of $ 1, 400 dollars per person. The IRS has begun issuing these payments based on the returns of the people of 2019 or 2020.

Some people are eligible for larger third round payments based on their income of 2020 of what your income was from 2019. The IRS is issuing additional stimulus payments to people after they file their 2020 .

Stimulus checks are not taxable income, so people do not have to pay taxes on funds that have already received.

The law exempts the first $ 10, 200 that people received in unemployment compensation in 2020. This change, which applies to households with incomes below $ 150, 02.

The above, is designed to help the millions of Americans who lost their jobs during the pandemic.

Married couples filing a joint return can exempt up to $ 10, 200 in unemployment compensation for each spouse, which means that couples can exempt up to $ 20, 400.

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