Stretch Your Dollar: How to handle your taxes when filing for unemployment

Stretch Your Dollar

(WTNH) — Tax season is right around the corner. As you begin to get your paperwork together, you may find this tax season mirrors 2020.

It’s likely to be complicated and confusing.

From unemployment to stimulus checks, 2020 was anything but a typical year financially for many families, which means tax season is likely to be a complicated one.

Jackson Hewitt’s Mark Steber reminds the millions of people who collected some kind of unemployment funds to claim them at tax time.

“Be sure to know that it is taxable,” he said. “It goes on a tax return just like any other income and you pay income tax on it.”

He said to keep a look out for a statement to tell you how many benefit dollars you received and the taxability of those. He said to be patient because it may come on multiple documents.

“Because they expanded many programs in the state, they extended who gets the money. The federal government layered in an unemployment package; many states are reporting them on one, two or even more statements, so you need to watch for all of those and make sure they reflect what you got in terms of unemployment benefits.”

If you’re working from home or if you’re now self-employed, you may be eligible for in-home office deductions.

He said with all the changes, it’s a good year to talk to an expert to help find all the ways you may be able to save or collect money this year.

“There are some wonderful provisions that allow you to look back and get additional stimulus money from the first program if you had an I-10 or individual taxpayer identification number, if you had a dependent born in 2020, adopted or fostered in 2020 you can get more money.”

Remember, if you file early and you’re set to get a refund, you’ll get your money early.

If you file early and you owe, at least by filing early, you’re protecting your information and you still don’t have to file and pay until April 15.

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