AUGUSTA, GA (WJBF)-Tax Season has officially arrived and there are many changes you need to know about this year before you file. One is stimulus checks. Jessica Thomas is a Senior Tax Research Analyst at the Tax Institute at H&R Block. She says tax filers who did not receive a stimulus payment can expect to have one this time around.
Jessica Thomas: “When you go to file your tax return for 2020 you would do the calculation for recovery rebate credit where you would get that additional $600 dollars that you did not get when they first issued the stimulus payment and that would either offset a balance due”
This means you would owe less money to the IRS and if you had a refund owed to you, expect an additional $600. Thomas says another change this year is that one thing that’s different about unemployment income is taxable.
“What will happen is that if you did apply for unemployment, you should receive a form called the 1099 G and that reports the amount of unemployment compensation that you received for the year and you will use that tax document to file your return for 2020. “
Filing your taxes can be stressful, especially during a pandemic seem a bit daunting and with the pandemic here, it can seem like an added stress, but Thomas recommends keeping a record of all your documents to prepare yourself.
“Get organized, right? If you did receive unemployment…if let’s say you own your own business. If let’s say you took money out of your retirement, you get information from the IRS and any sort of tax document you have save them because as you go to start your return that will help you and make the process a lot easier.”