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Accounting for stimulus payments, unemployment among changes Americans should note while filing 2020 taxes

With the COVID-19 pandemic causing changes in incomes last year, an Ohio tax expert is advising taxpayers to take a look at the differences in their incomes.

HILLIARD, Ohio — Tax season starts February 21, 2021, and there are a few changes to keep in mind while filing your 2020 taxes.  

Susan Thomas, the owner and CPA at Veritas CPA Group in Hilliard said unemployment payments given out in 2020 need to be top of mind.  

“They are taxable, she said. 

“Hopefully, the government’s been holding some for you, but, you know, some of the people we’ve talked to so far have not had any withholdings, and with the extra $600 a week, this could be a hefty amount.”

Thomas also noted that people who earned a lot less in 2020 than they usually do can use their 2019 income on this year’s tax returns. 

Those who received stimulus payments will have to fill out an additional form this year, and if those who did not get one will receive one eventually if they qualify for it. 

There is good news though.  

“If you got overpaid on your 2020 stimulus payment, and your 2020 income says you actually received too much stimulus payment, then you don’t have to pay it back,” Thomas said. 

Thomas says if it looks like your taxes might be too much to handle, the IRS offers payment plans.  

Filing season starts Friday, Feb. 12, and the deadline to file is on April 15.

   

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