Digital Exclusive: How stimulus checks can impact your tax return

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SIOUX CITY, Iowa (KCAU) – Even though it’s the beginning of March, the deadline to file taxes for last year is quickly approaching.

With the end of the tax season being on April 15, it’s important that people can file their tax returns on time in order to not have any potential issues down the road.

“Mostly so you avoid any penalties from the IRS. Also, helps you to avoid any red flags from the IRS. If you need an extension, you get those things, but it kind of tends to perk their ears a little bit more to you,” said Ryan Odor, Center for Siouxland.

Ryan Odor, VITA program coordinator with Center for Siouxland, says the VITA program has already filed more than 650 tax returns which equals around $1.5 million in refunds.

One of the things people need to remember is to have all of their documents and double-check everything.

“A big thing in Iowa is that Iowa Workforce Development sent out unemployment statements to people, and then they made a mistake on them and had to send out a second one. So, making sure that they have that second one that says ‘duplicate’ at the top of it,” said Odor.

Last year, people received either the first, second, or both stimulus checks from the federal government.

For those wondering if the stimulus checks will be an impact on your tax returns this year, it all depends on if you received them or not.

“It won’t impact them at all unless you didn’t get one because that is not taxable income. So, the only way it will impact you is if you didn’t get one, then you’ll see the impact in the part of you would get that money in your tax returns,” said Ryan Odor, Center for Siouxland.

Odor mentions those who have received the stimulus checks don’t have to worry about them affecting their tax returns.

This year, the federal government will not be penalizing people who took money out of their retirement funds early for COVID-related reasons but still have to pay the taxes on it.

For people who need still need to file their taxes, they can call the Center for Siouxland at 712-252-1861 ex. 11 to schedule an appointment.

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