03/18/2021
New Tax Deadline and Some Relief from Unemployment Tax.
Good News! The Internal Revenue Service (IRS) has extended 2020 tax filing and payments until May 17, 2021. In addition, those who received unemployment payments in 2020 will have $10,200 excluded from taxation on your federal income return. This exclusion will occur when you file your tax return for 2020. If you collected more than the $10,200 dollars in unemployment, the additional amount will be taxed at your usual tax rate. (Call me if you need more information about the unemployment exclusion)
For those who have already filed and have paid the tax on unemployment, the IRS is working on a fix so that those taxes assessed will be returned. The IRS will provide guidance soon on the return of unemployment taxes. I will post more information about the return of tax on unemployment as this information becomes available.
For those who have not received the new stimulus, IRS has or is in the process of sending out payments to those who have filed their 2020 taxes and some families with small children. While IRS has not definitely stated you must file your 2020 tax return to receive the new stimulus, they strongly suggest it.
I hope this information has been helpful! Please reach out to me if you need further information or wish to file your tax return. We provide, in-person and virtual tax filing appointments. We have an encrypted file share for the safe storage of your tax documents and we EFILE both state and federal returns.
Please stay safe,
Chuck