A Word About Stimulus Payments and Tax Implication(s)

January 31st, 2021 at 10:01 AM

They received the full amounts of both Economic Impact Payments if:

• Their first Economic Impact Payment was $1,200 for individuals; $2,400 married filing jointly for 2020, plus $500 for each qualifying child including those born in 2020.
• Their second Economic Impact Payment was $600 for individuals; $1,200 married filing jointly for 2020, plus $600 for each qualifying child including those born in 2020.

People who did not receive the payments or only received partial payments may be eligible to claim the recovery rebate credit when they file their 2020 tax return, even if they are normally not required to file a tax return. Tax preparation software, including IRS Free File, will help taxpayers figure the amount.

Taxpayers should remember that stimulus payments they received are not taxable, and don\\\\\\\\\\\\\\\'t reduce the amount of their refund.

Important filing season dates

• Friday, February 12. IRS begins 2021 tax season. Individual tax returns start being accepted and processing begins.
• Thursday, April 15. Due date for filing 2020 tax returns or requesting extension of time to file.
• Thursday, April 15. Due date for paying 2020 tax owed to avoid owing interest and penalties.
• Friday, October 15. Due date to file for those requesting an extension on their 2020 tax returns.