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But this isn t widely understood.
Stimulus check affect on 2020 tax return. You won t be required to pay back a stimulus payment if based on your 2020 tax returns you no longer qualify for the amount you received. Some people assume that the irs will add the amount to your income generating a bigger tax bill or reduce your future tax refund when you file your tax return next year. When you file your tax return next year there will.
The stimulus payment or economic impact payment as the irs calls it is technically a tax credit for 2020. Those who missed out on the first stimulus check may get extra money in their tax returns. If you were a high earner and your income took a big hit in 2020 you may be.
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