The IRS will not start accepting tax returns until mid-February this year. In addition, there are a few changes that are being made, which may affect areas you may either gain more or lose more money than in years past.
2020 changed how Americans live their lives, and especially how they conduct business. Many who worked from home may have wondered which at-home work expenses may be deductible on their taxes. Unfortunately for the majority of people forced to work from home, work-related expenses are not deductible. The only exception is if you are considered self-employed, in which case things such as the home office deduction are in play.
If you lost your job in 2020, you may have qualified for the extra $600/week unemployment benefit. This money is, in fact, taxable. So it is important that you either had money withheld, or else put some money away in savings to account for your increased tax bill when that comes due.
If you were one of the millions of Americans who qualified for federal stimulus checks, those are not taxable and are yours to keep in full. In addition, if you were due a stimulus and did not receive it, filing your 2020 taxes will give you the chance to be made whole and paid out the amounts due.
In 2020 there was an extension on taxes beyond the normal due date, but so far in 2021 the due date is still April 15.
Finally, if you were able to donate to charities this year, you are able to deduct up to $300 even if you don’t itemize. Previously you were only able to deduct charitable donations if you itemized on your taxes.