Tax season is upon us, and the April 15th due date is quickly approaching, which means that, if you haven’t yet filed your taxes, you must do so in the very near future. There’s just one problem: with 2020 being the year of all things unprecedented, you might be unsure of how 2020 tax filing will go, and what changes will be in store for you. Here are a few things you can expect this year and should be aware of as you move forward with filing your taxes for 2020.
Tax Appointments Will Be Virtual.
If you usually meet up with a CPA or other professional before filing your taxes, you can certainly still do so this spring – you’ll just need to be prepared to take the meeting online. Luckily, this won’t function much differently than your work-related Zoom calls, but you might need to upload pertinent tax documents to a secure portal ahead of time.
You Might Be Able to Receive an Earned Income Tax Credit.
If you received low-to-moderate wages in 2020, you might be eligible for an Earned Income Tax Credit. This is particularly true if you have children. Perform a quick Google search to learn more about the EITC’s requirements and if you meet them. If you do, you can expect to either get a higher refund or pass less in owed taxes.
You May Be Able to Claim Stimulus Payments.
Are you still waiting on one (or more) of your stimulus payments? You’ll be able to claim those missing funds on your 2020 tax return by requesting a recovery rebate credit. When doing so, you will be able to claim a new dependent or update your employment information with the IRS, which in turn should help them restore your stimulus payments to your account.
Your Side Hustle May Have Earned You More Write-Offs.
2020 was a great year for side hustles. If you assumed a freelance position or took up gig work as a food delivery driver, make sure you claim all the write-offs applicable to your additional job. This might take the form of deducting mileage if you drive for a delivery service or accounting for the tools and gadgets needed to fulfill your duties as a freelance writer.
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