My colleague Sarah D. Wire recently broke down ways the package
could affect people’s finances. One big takeaway: There are tax implications, so take a look at these points even if you’ve already filed your tax return.
File quickly if you made less money in 2020 or had a baby
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The Internal Revenue Service is expected to distribute the stimulus money which does not count as taxable income within a few weeks via direct deposit, debit cards and paper checks.
Your most recent income tax return will be used to determine how much money you will receive. If you already filed your 2020 return and it’s been processed before your stimulus money is sent, your stimulus payment will be based on your 2020 income. Otherwise, your pre-pandemic income will be used to determine the amount you receive.