Stretch your Dollar: How stimulus checks will affect filing your 2020 income taxes

Stretch Your Dollar

The clock is ticking, and you can’t procrastinate any longer. It’s Tax Day. And, this year is likely one of your most complicated returns yet.

If you received a stimulus check, we are stretching your dollar with what you need to know about those checks and your returns.

RELATED: May 17 is the last day to file your 2020 income taxes

If you waited until now to properly file those stimulus checks or unemployment, The Street has three helpful tips:

  1. If you make less than $150,000, the first $10,200 of your income may be tax-free.
  2. Stimulus checks aren’t taxable, so remember to leave them off your income.
  3. If for some reason you made a COVID-related distribution from your IRA or 401K, the 10% early withdrawal penalty may be waived if you had COVID or other COVID-related impacts.

If you were self-employed and could not work due to coronavirus, don’t forget that you may be able to claim credits that can be worth thousands of dollars. 

Important tips to keep in mind so you don’t overpay this Tax Day:

  • It’s harder to get money back from the IRS than it is to file an amendment later to pay them more if you make a mistake.
  • If you’ve never received the stimulus you’re owed, you can claim what you’re owed in the form of a recovery rebate credit when you file your taxes.
  • Do something today: if you are planning to file an extension, you still have to pay what you think you owe. It’s an extension to file, not to pay.

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