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. Here’s what you need to know.
Are any of the expenses of working from your home office 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.”
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.”
What about unemployment benefits?
“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.”
Can I still get stimulus money if I didn’t receive it earlier this year?
“There is. 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.”
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.
© 2021 Cox Media Group