With a new year comes everyone's favorite time of year, tax filing time, right?

And when filing this year, you've probably thought 'am I going to have to pay back or any taxes on the stimulus checks we received in 2020?'

Long story short, you will NOT have to pay any extra taxes because of the stimulus money, and here's why.

Stimulus checks are considered a federal tax credit during the 2020 calendar year that the US government gave out to aid individuals through the pandemic and the recession it has caused according to The Motley Fool.

If you haven't received one or both of your stimulus payments, then this is how your tax return will look this year:

"People who have already received stimulus checks will still get any normal tax refund to which they're entitled when they file their 2020 taxes. Those who are eligible for stimulus checks but do not receive them before filing their 2020 taxes will end up with a larger refund instead"- The Motley Fool.

So there's a quick summary about how stimulus checks' will impact your tax return but what if you had to claim unemployment or withdraw from your retirement during 2020?

Both the use of employment aid and early withdrawal from your retirement accounts could cause you to receive a smaller tax return.

If you received unemployment benefits of any kind, the amount you received is still considered income and therefore will be taxed.

Source: The Motley Fool

Enter your number to get our free mobile app

10 Chocolate Desserts For Valentine's Day