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TurboTax Help
Intuit

How are my taxes affected by the coronavirus (COVID-19) pandemic?

The first two stimulus payments were based on information from your 2019 or 2018 tax filings. But, the amount you were paid will be reconciled on this year’s tax return based on your 2020 situation.

If you didn't receive the correct amount of first or second stimulus payments, you can claim the Recovery Rebate Credit when you file your 2020 taxes and it will provide the same amount of payment as they would have. TurboTax will guide you through this to make sure you get every dollar you deserve.

Learn more about the third stimulus check here.

The Economic Impact Payments (all three) are not considered income, and therefore are not taxable. They won’t reduce your refund or increase what you owe when you file your taxes this year. They also won’t affect your eligibility for any federal government assistance or benefits.

There is a special temporary rule allowing individuals to use their earned income from tax year 2019 to determine their eligibility and amount of Earned Income Tax Credit and the refundable portion of the Child Tax Credit (i.e., the Additional Child Tax Credit) in the 2020 tax year. TurboTax will help you to do this when you file your 2020 tax return this year.

No, your stimulus payment isn’t taxable. It won’t reduce your refund or increase what you owe when you file your taxes this year. It’s also not considered income, so it won’t affect your eligibility for any federal government assistance or benefits.

If you didn’t receive the correct amount of first or second stimulus payments, you can claim the Recovery Rebate Credit when you file your 2020 taxes and it will provide the same amount of payment as they would have. TurboTax will guide you through this to make sure you get every dollar you deserve.

We suggest that you save your IRS letter-Notice 1444 which is mailed after the IRS provides you with a stimulus payment. You can use that info when you file your 2020 return to make sure you’ve received the amount you deserve. If your stimulus payments weren’t correct, you may receive the funds as a credit which can add to your refund.

If you needed to take money out of your retirement plan, keep in mind that the 10% early withdrawal penalty may be waived on up to $100,000 of retirement funds withdrawn if you are a qualified individual impacted by coronavirus. You are a qualified individual if:

  • You, your spouse, or dependent are diagnosed with COVID-19
  • You experience adverse financial consequences as a result of being quarantined, furloughed, or laid off
  • You had hours reduced due to coronavirus
  • You are unable to work due to your child care closing or reducing hours

Additionally, income attributable to such distributions would be subject to tax over three years, and you may recontribute the funds to an eligible retirement plan within three years without regard to that year’s cap on contributions.

Effective March 13, 2020, the COVID-19 pandemic is a qualifying natural disaster.

To ensure the protection, privacy, and security of customer account information, TurboTax is only able to assist account owners in accessing their account.

Yes. Consider TurboTax Live. It includes unlimited tax advice for a specific area on your tax return or you can even hand off your tax return for a line-by-line service. And, your taxes are guaranteed to be done right.

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