Taxing time: How the pandemic will affect filing your taxes

  • by:
  • Source: AP News
  • 04/09/2021
The pandemic has made everything a bit trickier — tax filing season is no exception. 

The whole process is starting a bit later this year and there are a few wrinkles to be aware of for those who received unemployment benefits, worked from home, took on gig work, were a victim of fraud — or faced other issues common to 2020. 

The IRS will begin accepting tax returns on Feb. 12. Here’s what you should know before you file: 

___

UNEMPLOYMENT

Unemployment benefits are taxable income, which may surprise some filers.

Workers are not required to have federal taxes withheld from their benefit payments. While they are given the option to have it withheld, few opt to.

Additionally, unemployment benefits are always subject to federal taxes, but a handful of states do not tax it.
___

RELIEF CHECKS

The two rounds of economic impact payments sent to millions of Americas are not taxable income. But people who did not get their payments, or received less than they were due, can get the proper amount by claiming the Recovery Rebate Credit on their 2020 taxes. 

As a reminder, the first round of payments was worth up to $1,200 per eligible adult and $500 per dependent; the second was worth up to $600 for each eligible household member. Those who received a larger economic impact payment than they were due will not be penalized.
by is licensed under

Help FAIRtax Become The Number One Issue in 2025

Enacting the FAIRtax must be a prominent topic in these times. We did it before, we can do it again, but we need your help!

Help out with a One-Time Contribution

Your gift of $25, $50, $100 – even $1,000 or more if you can possibly spare it – will help FAIRtax.org bring an end to the IRS and promote a FAIRtax. So, I urge you, please give as generously as you can.

Billing information (REQUIRED)

Payment information (REQUIRED)

To donate by check:
Americans for Fair Taxation
PO Box 4929
Clearwater, FL 33758

If you need to make changes for any reason to your existing Monthly Donation or if you have a question about any charge, Please email info@FAIRtax.org or call ‭(800) 324-7829‬
Provide ONLY your name and phone number, do not provide any card info.

Please Note that inputting your new information at our website won't update your account.

Thank you for your support!


Americans for Fair Taxation® is a 501(c)(4) non-profit, non-partisan grassroots organization solely dedicated to replacing the current income tax system with a fair, simple and transparent national consumption tax – the FAIRtax® Plan. We rely entirely on contributions from concerned citizens like you who want a tax system that will generate jobs and stimulate the economy. Welcome to the FAIRtax team!

Connect

Share