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How the new COVID relief bill could affect your tax returns

Posted at 11:20 AM, Mar 11, 2021
and last updated 2021-03-11 11:20:07-05

RICHMOND, Va.-- Lawmakers passed a third coronavirus relief bill Wednesday, and with it comes some extra money in your bank account.

The relief bill also includes another round of checks going out to most Americans. But this group of checks is following a slightly different set of rules than the last two.

Individuals making less than $75,000 a year will receive a $1,400 check, and couples who earn less than $150,000 a year will receive a $2,800 check.

If you claim dependents on your tax returns, including children in college up to age 23 or elderly parents, you’ll also receive an additional $1,400.

The new stimulus bill is also going to impact tax returns -- $10,200 dollars of unemployment is not going to be considered taxable income anymore, and even if you’ve already filed your taxes for 2020, you can have them amended.

Dana Hatton with Exclusive Tax Service VA said her office is going to be busy the next few weeks with these amendments.

"We have over 100 tax returns that we're gonna have to amend," Hatton explained. "So we have all these clients that we've already prepared their taxes, and they're getting their refunds. And it's gonna make a considerable difference.”

Hatton said some of these people will no longer owe money, but rather they’ll be getting a substantial refund.

"For instance, we have one taxpayer that is supposed to get back $281," she explained. "And when we take off the $10,200 for him and his spouse, they're gonna get a refund of over $4,000 now. So it's really important that you go back to your tax payer, and get them to amend these returns so that you can get this extra stimulus money.”

Hatton said you can still file an amendment even if you’ve already received your refund check for your 2020 taxes.

President Joe Biden is expected to sign the bill on Friday. After it becomes law, the IRS could begin delivering the checks within one to two weeks.