The third round of stimulus
checks continue to hit bank
accounts every single day.
While the deadline to file your
taxes has been extended here to
answer all of your questions,
Mark Hensley from AARP,
North Carolina,
Kevin Robinson with Robinson
tax and Accounting services,
Mark and Kevin. Can you hear me both?
Hey Mark and Kevin, I want to make
sure that both of you can hear me as
we start our Q&A topics for today.
We have a short and time frame
to be able to do this. Kevin,
first and foremost, let's talk
about the extended deadlines.
We have a graphic so that
people can see what's happening.
Federal and state.
While turning the federal and the state
together have extended the filing and
the paying deadline from April 15th
to May 17th so it does work for the
IRS and the Northland partner revenue
has agreed to go along with that.
OK, we wanted to make sure we were putting up
the right graphics so that you would know.
So May the 17th is the deadline for both
the state and the federal guidelines.
I'm not sure if market looks
like Marcus frozen somewhat.
We're going to see if we can
get him back in there.
In the mean time we have a question about.
The taxes and what happens if
they have an issue with the
stimulus this time around?
Kevin, if they
don't get the stimulus this time around,
they can again get it on their
taxes next year. Is that correct?
That is my understanding.
Yes town. If they do not
get the 1400 or the 2800 for the
married couple for whatever reason,
they should be able to get the recovery
rebate credit on the 2021 return. Yes?
The answer if for some reason you
don't get that third stimulus,
you can always get it on the
next round of tax returns.
Alright Mark, you're back with us.
Let's talk dependence,
'cause that's the big change
with this third stimulus,
it is so this is the first time
that a dependent of any age.
If you're a tax filer an you file any
dependent of any age on your taxes.
If you're within the income thresholds,
each of those dependents,
you will receive $1400.
So it's not a different amount.
And for those people carrying
an older adult as a dependent,
they'll also get $1400.
So if you're a family of five,
this is $7000.
It's quite big,
alright, and someone
just ask how much stimulus money can
a family with children receive. I've
seen a few totals out there,
but it is $1400 for every
single dependent. Yes, and I don't.
There is no cap on how many dependants.
Again, it depends on how many
dependents you have when you file
your 2020 taxes. OK Kevin, this
question is. Are stimulus payments
counted as taxable income?
Well, I know basically that's
stimulus payments are advanced on
recovery rebate credit annual,
so they're not taxable income on the federal.
They won't impact you at all.
The only thing that may impact your
stimulus payments don't match the credit.
The recovery rebate credit
when you file the return.
Then you may get an extra
refund through that,
but they're not taxable on
federal or state. OK,
this next question Mark is if
my parents are dependence now,
will they receive a stimulus
payment or will I receive it for
them since I count them as
the dependent? So that's
a great question. The payment
would go to the tax filer, not the
dependant themselves, and then you
have to leave it up to family dynamics
to figure out who actually pockets
that cash. That's correct,
because the IRS is putting it
in one bank account and giving
it to those people. That
is correct. OK, so the next question is,
will my stimulus payment be taken out
of my 2020 tax return?
Um, the only thing that's Tim was payment.
I mean basically, is reconciled, you know,
on the 2020 tax return is against the
recovery rebate credit, so it should
not be taken out of the tax work.
However, if they do, oh, and they are,
do a recovery rebate credit than that
credit itself can bring down number one
what they owe by the credit amount.
Or it can increase their refund
by the credit amount. OK,
so the quick answer is no,
it doesn't count against you.
In fact, you could just get more money.
Alright, this has been a
condensed stimulus and tax Q&A.
We thank you both.
For your time and expertise and
your quick questions as well.