Archive for February, 2021

People Should Be on The Lookout for Identity Theft Involving Unemployment Benefits

Thursday, February 25th, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

The IRS urges taxpayers whose identities may have been used by thieves to steal unemployment benefits to file a tax return claiming only the income they actually received.

In 2020, millions of taxpayers were affected by the COVID-19 pandemic through job loss or reduced work hours. Some taxpayers applied for and received unemployment compensation from their state. By law, unemployment benefits are taxable.

Scammers also took advantage of the pandemic by filing fraudulent claims for unemployment compensation using stolen personal information of individuals who had not filed claims. Payments made as a result of these fraudulent claims went to the identity thieves.

Taxpayers who receive an incorrect Form 1099-G should contact the issuing state agency to request a revised form. If they’re unable to get a timely, corrected form from states, they should still file an accurate tax return, reporting only the income they received. They should save whatever documentation they have regarding their attempts to receive a corrected form from their state agency.

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Standard Deduction or Itemized Deductions?

Monday, February 22nd, 2021

The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice. 

Tax return deductions reduce the amount of taxable income when filing a Federal or state income tax return. In other words, using these deductions can reduce the amount of taxes that a taxpayer owes.

In most cases, taxpayers have a choice or option of either taking the “standard deduction” or “itemizing” their deductions. The standard deduction may be quicker and easier, but, itemizing your deductions may lower your income taxes more, in some situations. It’s important for all taxpayers to look into which deduction method is best before they file their income tax returns.

New this year
Following tax law changes, cash donations of up to $300 made by December 31, 2020 are deductible without having to itemize when people file a 2020 tax return.

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