Here are some answers to questions I often get asked.
- The filing deadline for 2020 taxes is 4/15/2021.
- The IRS will not actually start processing files until 2/12/2021.
- If you did not get your stimulus payment(s) we can file for them with your return.
- If your income dropped in 2020 you may get additional stimulus recovery money when you file your 2020 return if you did not get the full amounts.
- The amount you received for stimulus payments is required to file your return properly and also to see if you will get any additional money.
- There is no deduction for your home office if you are a W2 employee. This can only be used if you are self-employed.
- A credit is available for those of you who have a child in college and are claiming them as a dependent. It’s a big one, don’t miss this.
- Make sure you don’t miss the child tax credit along with the dependent care credit. Both are a nice chunk of money.
- You can write off up to $300 of charitable donations even if you are not itemizing your deductions.
- The stimulus money you received is not taxable.
- The additional money you received with your unemployment payments is taxable.
- If your business got a PPP loan (Paycheck Protection Program) and used the money for payroll, your loan is forgiven.
- If you took under $100,000 out of your IRA in 2020, you will not have to pay the usual 10% penalty if you are under 59 1/2 years of age.
- You can now put money into your traditional IRA to lower your taxes if your are over 70 1/2.
- Did you get every deduction and credit if you filed your own 2019 taxes? If you’re wondering about that, contact me and I will review the return you created.
You can contact me via phone (612-791-2320), email or message me anytime.