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How the coronavirus stimulus money may affect your 2020 tax return

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Three ways the coronavirus stimulus money may change your 2020 tax return

Tax season is right around the corner, and millions of Americans will file taxes that look much different than in years prior.

And while Congress can't decide on a second round of stimulus checks, the tax implications of all the Covid relief Americans received has already been determined, according to Garrett Watson, a senior policy analyst at the Tax Foundation.

And there is some good news.

Those who missed out on the first stimulus check may get extra money in their tax returns.

If you were a high earner and your income took a big hit in 2020, you may be eligible to receive a partial or full stimulus payment, Watson said.

And the IRS will only make adjustments in the taxpayer's favor so you don't have to worry about paying the relief money back, according to Watson.

Check out this video for a full breakdown of which benefits may end up costing you money and to see what tax withholdings are set to change in 2021.

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