When you are ready to prepare your taxes, ABC10 has spoken with a tax professional about what to prepare.
SACRAMENTO, CALIFORNIA. – It is this time of year that we prepare to pay our taxes. Last year, when you looked back at potential deduction opportunities, ABC10 spoke to a senior tax research analyst about what to expect.
“One interesting change for 2020 is that if you don’t list, you’ll be able to deduct $ 300 in charitable donations for the first time. This is an adjustment to income, which is a very good type of deduction. That’s one thing that can help a bit, ”said Nathan Rigney, Principal Tax Research Analyst at H&R Block.
If you’ve done gig jobs like driving Uber or Lyft, or delivering groceries through Instacart, these taxes should be prepared.
“Gig workers all have to pay their own taxes,” said Rigney. “You have to make estimated payments. If they don’t make estimated payments, all of the tax will be due at once when they file their taxes. You also have to pay a self employment tax. “
If you applied for unemployment, these benefits may be taxable on your federal return.
“You will receive a 1099G via email that will tell you how much unemployment benefits you received and that you will then give to your tax professional or use when you complete your return,” said Rigney.
If you have not received this form, you can access it in your UI online account.
A new change to the US rescue plan means people who have received unemployment benefits will not have to pay federal taxes on their first $ 10,200.
If you are a small business owner who received a loan for the paycheck protection program, you can deduct the costs paid through that loan. However, if you are an employee who works from home like many others who made this adjustment in 2020, you are on your own.
“Unfortunately, if you’re a salaried employee, even if you spent all of these additional expenses on building your home office and the convenience, they won’t be deductible on your federal tax return that resulted from a change in tax law,” Rigney said.
VIEW MORE: New federal incentive law offers tax breaks for unemployment benefits | Dollars and sense
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