How will COVID stimulus impact your taxes?

While last spring’s stimulus checks may feel like a distant memory, you may find them coming back into sharper focus as we approach tax season. We’ve prepared a quick rundown for those wondering if and how the first round of stimulus checks will impact their 2020 income taxes.

  1. Perhaps the best news of all: receiving a stimulus check won’t increase your tax liability or reduce your refund. The stimulus check is not considered taxable income and will not increase the amount you owe when you file your 2020 taxes, according to global leader in consumer and business credit reporting, Experian.
  2. Stimulus checks were issued based on income from prior years’ income taxes. If you were originally ineligible and your income decreased markedly in 2020, you could be eligible for the stimulus credit when you file your 2020 return. Don’t worry, if your income increased from 2020 compared to prior years’ filings, you will not lose stimulus funding that you already received. All adjustments made will be in the favor of the taxpayer.
  3. Stimulus checks are not an advance tax refund and will not impact the refund from your 2020 return for that reason, either. Stimulus payments are federal tax credit for the year 2020, eligible to be paid immediately instead of being paid out post-filing.
  4. If you are eligible for a stimulus check, but did not receive it yet, you may be able to claim it when you file your 2020 return.

If you’ve got further questions about stimulus checks and taxes or other relief programs like payroll tax deferral, unemployment, or Paycheck Protection funds, this would be an opportune year to bypass DIY options and seek professional accounting help for filing. You can also call the toll-free IRS hotline with questions 1-800-829-1040 for individual tax issues or 1-800-829-4933 for business-related tax issues.

Please reach out if there’s anything I can do for you and your family in the year ahead. I’m always happy to have a chat!

Please drop me an email or call if you have any questions – or someone you know is in need of expert advice. I love to help those you care about. If you have a referral please click the button down below. Your referrals are the heart and lifeblood of my business.



Omar Khamisa
Mission San Jose Mortgage
2111 W. March Lane, Suite B100
Stockton, CA 95207
Office: 209-651-2000
Mobile: 510-648-5535
Fax: 209-434-2311
NMLS: 369325


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