FORT WAYNE, Ind. (WANE) – Tax return season kicks off Friday, and many are wondering if the recent stimulus checks will affect whether they get a tax refund or owe money to the IRS.
Stimulus checks do not count towards your tax returns. However, there is some confusion as to whether they impact how much of a tax refund you may receive.
WANE 15 sat down with Mike Sylvester of SBS CPA Group to better understand how filing stimulus checks on your tax form may impact potential tax refunds this year. If you are still missing stimulus payments, you can reclaim those on your 1040 form using the recovery rebate credit.
“If you were overpaid, it does not affect your return,” Sylvester said. “If you were paid the right amount, it does not affect your return. If your underpaid, you get the difference back.”
Sylvester also wants to remind Hoosiers who received unemployment benefits this year to report those on their tax returns. Unemployment income is taxable. Indiana’s Department of Workforce Development website has more information on where to find the 1099G form, which reports how much one received in unemployment funds.
If you plan to file taxes electronically, most services have a “help” function that can address frequently asked questions. You can also consult an accountant who specializes in filing taxes before submitting your 2020 tax return.