2020 tax season: Paying more taxes due to stimulus checks?

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Posted at 8:59 PM, Jan 23, 2021

TUCSON, AZ — Many people are wondering if they’ll get more or less of a tax return this year because of the stimulus checks; thinking the government may ask for more money back due to giving out those checks last year and about a month ago. But a local financial planner says that’s mostly a myth.

“The tax code didn’t change… There's no actual written thing that says, This equals this, equals this, which equals this,” said Tiana Ronstadt, a financial planner with Power Women Investing.

Ronstadt says the one deduction that may change for many of us is deducting student loans — since they were deferred and couldn’t accrue interest.

“For 2020, because we saw deferment of some things that were deductible, like student loans, you're going to feel that. And I then I'm going to potentially owe more. I also potentially, depending upon my income, might have to pay taxes on the stimulus check, versus someone else potentially doesn't have to show again, every single person is a teeny bit different. That doesn't make it easy. That makes it more complicated,” said Ronstadt.

But how much you owe or receive is largely based on your income.

“That rate of based on my income is my rate of income tax that I'm gonna pay. That's a gross number. The net number is any potential deductions I might have any potential giving I might have. Those things also are gauged based on how much I make,” said Ronstadt.

And what will be more interesting going into 2021, Ronstadt says is the new tax code. 2021 will be bringing back more deductions for us to write off than the tax code we are under right now.