After remote working, stimulus checks and all that 2020 brought us, how will your taxes be affected?
by: Carolyn Sistrand
Posted: Jan 4, 2021 / 05:57 PM ESTUpdated: Jan 4, 2021 / 06:37 PM EST
BOARDMAN, Ohio (WKBN) – While you may be waiting on the second stimulus payment or hoping for a third, tax refunds may also soon give you a little extra cash.
Latest stimulus payments have begun hitting bank accounts, but when can you expect yours?
After remote working, stimulus checks and all that 2020 brought us, how will your taxes be affected?
Kathleen Kalosky, the owner of Sullivan Tax Service, said some people may see a little extra money in their return.
“If you did not receive your stimulus check but you were eligible, you will get it with your 2020 tax return,” she said.
If you did receive a stimulus check, however, the common question is will it be taxed?
Andy Reigstad, owner of Tax 29, said the stimulus checks are not taxable income.
“It doesn’t have to be paid back, but it is something that is tied to the IRS,” he said.
But how about the many Americans who were on unemployment due to the pandemic?
“Unemployment is taxable to the IRS and yes, it is taxable to the state of Ohio,” Reigstad said.
If you are working from home you may not be able to write off those expenses.
“Most taxpayers, unfortunately, are not going to be able to write off anything if they are working for a company and they are getting a W-2. Those deductions are no longer usable with the current tax law,” Reigstad said.
Andrew Reigstad, the owner of Tax 29, said one refund that may be available for remote workers is through local taxes.
“Maybe they were in Youngstown or Canfield or another city where there was a city income tax and now they are working from home, and maybe they live in Boardman or Austintown where there is no local tax. They may be able to get a refund on any of those local taxes that are being taken out of their paycheck if their payroll hasn’t set that up already,” said Reigstad said.
People can begin to file their taxes now. Kalosky doesn’t anticipate any issues.
“I don’t think there is going to be any problems with the forms coming out. I don’t foresee any major issues except having the contact when come into your tax office,” Kalosky said.
As of now, the deadline to file is still April 15.
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