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COVID-19 relief bill and your taxes

IRS shrinks the 1040 tax form
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Posted at 9:23 PM, Mar 07, 2021
and last updated 2021-03-08 08:32:57-05

LAS VEGAS (KTNV) — The new COVID-19 relief package is heading back to the House of Representatives, and it could be ready for President Joe Biden’s signature this week.

Some wonder how the package could play into tax filings.

RELATED: Americans race to file 2020 tax returns and get refunds; IRS reports 35 million returns in 1st week

“People aren’t sure how this new bill that was passed through the Senate is going to impact their personal taxes,” Tracy Janssen said.

Janssen is with Symphony Business Services at Lakeside Village Center and specializes in tax preparation and planning.

This year, she says people who have given her their taxes may have their filings on hold for various reasons.

“Their income might be different for 2020, so it would impact the amount of stimulus they may receive,” Janssen said. “Maybe they received some unemployment last year.”

The clock is also ticking as unemployment benefits will expire next weekend for millions of Americans.

“We won't know 100% until the House passes their reconciliation process,” Janssen said.

The relief package would include things like the first $10,200 of unemployment payments being tax-free for those households who qualify, and $1,400 stimulus checks for most Americans.

RELATED: What's in the $1.9 trillion coronavirus relief plan passed by the Senate

Those checks will not impact your tax return this year.

“This next stimulus is going to be an advance of the 2021 tax credit,” Janssen said.

April 15 is the deadline to file taxes for most states, including Nevada.

RELATED: Easier ways to do your 2020 tax return