These are the answers to some of the biggest questions you’ve had about filing your 2020 taxes
ATLANTA — Tax Day is less than two months away. With the COVID-19 pandemic, it’s proving to be a tax year like no other.
Metro CPAs told Channel 2 Action News that they are getting flooded with calls asking things such as, ‘Will I owe taxes on my stimulus dollars?’”
Channel 2 anchor Justin Farmer took those questions to Elise Walker, CPA at CDRW Partners, to get some answers to our viewers’ questions.
With a lot of people being forced to work from home the past year, Farmer asked Walker if any of the expenses of working from your home office are deductible.
“This is a pretty common question that we’re getting lately,” Walker said. “Unfortunately, with the new tax law that went into effect a couple of years ago, employees and the company are no longer allowed to take the home office deduction. Only if you’re self-employed.”
Another big question that viewers have been asking is, “Are stimulus checks taxed?”
“No. So the stimulus checks that you’ve received, the one last year and the one this year, is not taxable. You have to report it on your tax return, but you won’t pay any tax dollars on that,” Walker said.
If you received unemployment benefits though, those may be.
“So, unemployment benefits are taxable. You should have opted to withhold taxes when you applied. So if that’s the case, you hopefully won’t owe any money on that. But if you didn’t withhold any taxes, you’re going to owe money on that,” Walker said.
“Elise, what about those folks who feel like maybe they missed a deadline, or their original stimulus package check just never arrived. Is there an opportunity for Americans to go back in time and get some of their money?” Farmer asked Walker.
“There is,” she said. “On the 2020 tax return, there is a line item called the Recovery Rebate Credit. So, you will be able to go on your tax return” and “put how much money you’ve received from both stimulus packages that were sent out. Both of those checks. Your return will help you calculate what you’re owed, and you should get a tax credit for the amount,” Walker said.
Farmer also asked Walker about future stimulus dollars. She’s said it’s simply up to Congress, and there’s no telling when you might see those dollars, but it most likely will be another month.
Social Security taxes won’t be taken from some people’s checks."