UPSTATE, S.C. (WSPA) – Some people may want to leave 2020 in the past, but there’s one piece of the year that you’ll need to submit in order to fully move on: your 2020 tax returns.
Mass unemployment and working from home has caused confusion about how to fill out tax forms this season, but local experts say there are a few exemptions or deductions that people should know about.
Business owners who left their commercial offices and shifted their operations to their living room can file for a home office deduction.
The IRS will need measurements of your office space and other information to prove you qualify. Some tax payers can even include rent and mortgage payments under these Work From Home deductions.
The home office deductions do not apply to those who are employees working from home.
Experts say those who collected unemployment funds in the year 2020 will have to pay income taxes on every check they received if they selected the option to not withhold taxes.
“You’re being employed by the government essentially and they’re paying you for this unemployment benefit so it’s still taxable wages. That’s what the scary part is thats hitting people,” Brandon Robinson, CPA at Bradshaw, Gordon & Clinkscales, said.
Stimulus checks will not have to be paid back if criteria was met to receive the checks. For example, those who had a total household income that’s less than $150,000, or individual income less than $75,000 wouldn’t need to worry about paying anything for the stimulus payment.
Robinson said when in doubt reach out to a local accountant or tax specialist