Womenz Magazine

Everything You Need To Know Before Filing Your Income Taxes This Year

This year the IRS will start accepting tax returns in mid-February. But there are a few changes this year that you should know about.

The year 2020 changed the way many Americans work. If you’ve been clocking in remotely during the pandemic, you might wonder if you can write off home utility bills since your office is now your home.

“Unfortunately the answer is no. For most of us, we can’t deduct those expenses like internet and things of that nature unless you’re self-employed,” Justin Halverson, with Great Waters Financial, said.

If you do happen to be self-employed, there are a bunch of deductions you can take, including the home office deduction.

If you lost your job in 2020 and qualified for the extra $600 a week in unemployment benefits, you do need to pay taxes on them.

Emily DeBoom, of Kasson, was furloughed for 12 weeks. She elected to have taxes taken out for her state unemployment benefits but knew she would owe on federal benefits in April.

“I was able to put a portion of that money into savings knowing that when tax time came around I’d have to pay that,” DeBoom said.

If you were one of the millions that qualified for the federal stimulus checks, those are tax-free and your full funds to keep. if you should have received one of the stimulus checks but didn’t get it, there will be a chance to be made whole when you file your 2020 taxes, so make sure you look into it and request that money.

There was an extension for taxes in 2020, but this year, so far, they are due April 15.

If you were able to give in 2020 and don’t itemize, you can deduct up to an additional $300 for cash contributions to make qualified charities. Previously, charitable deductions were only available to people who itemized their deductions.

Families may also be eligible for a child tax credit, with $2,000 given for each child under 17. Individuals must make less than $200,000 a year. Couples need to make under $400,000.

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