Question 1

Will my stimulus or ACTC check be considered as taxable income?

Accepted Answer

Your stimulus check is not considered taxable income. The check will not increase the amount you owe when you file your 2021 federal tax return and will not decrease your refund for the 2021 tax year.   However, for Advance Child Tax Credits, those that received more than they are eligible for may need to repay some or all of the excess amount.

Question 2

I was claimed as a dependent in 2019. If I file separate for 2020, will I receive my stimulus?"

Accepted Answer

Yes. You can file a tax return for 2020 and get a $1,200 stimulus payment, even if your income is so low you do not have a filing requirement.

Question 3

My income is lower than reported in 2020, can I claim the stimulus check for the rest of the $1,400 I did not receive originally?"

Accepted Answer

This 2021 Tax Season will be integrating a stimulus questionnaire to claim, qualify, or requalify you for the stimulus you did not receive back in March 2021. There will be an opportunity to recover this check when you file for your 2021 tax return.

Question 4

Will there be a fourth stimulus check?

Accepted Answer

It is unlikely a fourth stimulus check will be sent out to Americans. However, you may qualify for additional aid from your state. Click this link to look at what states are implementing stimulus for their residents.    https://www.cbsnews.com/news/stimulus-checks-states-issuing-bonuses-payments/

Question 5

I file using an ITIN, can I receive the stimulus for my American Citizen dependents or spouse?"

Accepted Answer

No. You must file a tax return with a valid social security number to receive the $1,400 payment for your dependents. If you have a spouse with a valid SSN, there are some instances you can file separately. Not every situation is eligible to file separately, each couple has a different tax situation to consider.    If you are in the military, you are an exception to this rule. You are eligible for the stimulus payment if one of your files with an ITIN.   However, many ITIN filers are qualifying for the ACTC.

Question 6

I received the PPP loan and/or EIDL loan. Is this considered taxable income?

Accepted Answer

Here is the simple answer:  the loan wiis not considered taxable income and expenses paid are with the procedes are tax deductible.    This law is retroactive and in some cases, you may qualify for an amendment for 2020.

Question 7

Will I pay taxes on Unemployment Benefits received during 2021?

Accepted Answer

Yes, this year all unemployment compensations are considered taxable income.

Question 8

I withdrew money from my 401K, will I be penalized for this early withdrawal?"

Accepted Answer

Maybe. The penalty waiver exemptions have broadened, however, if you reported a withdrawal in your 2020 tax return, you may be looking at taxable income from that distribution. Give us a call so we can help you determine eligibility.

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