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Why stimulus checks may appear to impact your 2021 tax refund

For those of you who had your income change in 2020, you could be owed stimulus money. If 2020 income is less than 2019 and they should have received more stimulus money than they actually received, then they should receive it in their 2020 tax return, Aggarwal said. If you adopted or had a baby in 2020, you also qualify for that additional dependent stimulus money. When it comes to taxes and those who collected unemployment, those funds are 100% taxable when it comes to federal and state taxes in North Carolina. If you do not have any withholdings while collecting unemployment, you should add that so you are not stuck with owing a large amount of taxes for your 2021 taxes. When it comes to your 2020 taxes, if you will struggle to pay the amount you owe to the IRS there are options.

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