With income tax filing season here, there are a couple of items some people need to be aware of, due to COVID-19.
Certified Public Accountant Tom Kennedy with Henkel and Associates in Boone and Jefferson says if you received the stimulus funding from the first federal government allocation, you don’t need to claim that on your income tax return as taxable income. He advises those who didn’t receive any amount or the entire payment to document that when filing taxes for 2020.
“Because there is a possibility if you did not receive the total amount that you could have received that you could still get some of it on the 2020. So you’ll need to know how much you did receive, and then compare it to what your income will show up this year (in 2020). Because the amount that was given to you is really for 2020, so if you didn’t qualify in ‘18 or ‘19 and they use that date, depending on when you filed your ‘19 return, you could still get some money this year.”
Some people may also have had to file for unemployment, and Kennedy says those people should receive a 1099 tax form in the mail. He adds, to make sure to use that form and report the taxable amount. If you don’t receive that form in the mail, Kennedy says to reach out to the organization or governmental entity you received unemployment payments from to request the 1099 form.