Third Stimulus Check: What you need to know
Monday is the deadline to file taxes with the IRS, and pay the tax liabilities you owe.
It comes more than a month after the original deadline of April 15.
What You Need To Know
- The Monday deadline to file with the IRS is an extension from April
- Any stimulus money you received is not taxable
- If you collected unemployment last year, the 1st $10,200 can be excluded from your income
Noha Ali was ready to write a check for her tax liabilities last month, but she was caught off guard.
“There’s an accountant that’s done my taxes for a couple of years, and we were supposed to do it this year. I sent the accountant all the documents and everything needed,” said Ali.
Ali ended up needing the extra time.
“Thanks for the extended time, because I was under the impression that my taxes were already being done, and under processing with the accountant that I used to do it with, and never heard back,” said Ali. “This is when I felt like ‘OK, there’s something fishy here.’”
She ended up finding another accountant to help, and got it done in the nick of time.
“Finally,” she said. “I mean, our taxes were accepted maybe four or five days ago, mine and my daughter’s. I was very nervous about it.”
Daniel Woodard, with H&R block, says if you haven’t filed yet, and you’re nervous about it: “Having questions and being able to connect with someone is really essential, because it’s all about financial security/financial confidence, and understanding ‘what’s my outcome on my return,'” he explained.
He says there are a couple things to keep in mind when filing this year.
You will need to make note of unemployment income, and that money is taxable.
The first $10,200 of unemployment can be excluded from your income, if your adjusted gross income is below $150,000.
As long as that’s the case, you could have either an increased tax refund or a lower tax liability with that $10,200 knocked off.
If you received stimulus checks, you will need to make that known when you file with the amounts that you received.
The stimulus money though, is not taxable.
By listing it, Woodard says, you give yourself a win-win situation.
“Best to put in the stimulus amounts that you’ve received, in order to see if ‘hey I qualify for additional stimulus money with the rebate recovery credit,'” said Woodard. “However, let’s say the calculations come out, and it looks like ‘man I’ve received too much.’ The U.S. government is saying ‘hey you don’t have to pay that back.’”