Washington D.C. – As the second round of stimulus checks were recently issued, many wonder how it may affect the upcoming tax season. For qualifying individuals who received both payments, their refund will not be impacted.
Individuals who received both payments don’t need to include any data about the payments when they file. Both payments will be considered as advanced payments or Recovery Rebate Credit.
If you earned big but took a hit financially, you can receive some or all of the payment. “You don’t have to worry about paying that relief money back,” said CNBC Policy Analyst Garrett Watson. The IRS (Internal Revenue Service) will make adjustments in favor of the person paying his or her taxes.
Qualifying individuals who didn’t receive the full amount of either check may claim it as a credit when they file. For the qualifying individuals who received neither, when filing they can claim a Recovery Rebate Credit.
If a third stimulus package is disbursed will these same rules apply?
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