If you are a W-2 employee (as opposed to an independent contractor), the answer is no. This is a result of the 2017 Tax Cuts and Jobs Act (TCJA) that made unreimbursed employee business expenses for employees ineligible to be deducted. If a person is self-employed, however, they can still deduct qualified home office-related expenses and any furniture purchased for business use, Anderson explains.
You do not owe taxes on any stimulus checks received in 2020. However, unemployment compensation is, believe it or not, considered taxable income at the federal level and in most states.
Unemployment income gets reported on Form 1099-G, the same form that state tax refunds are reported on. For a state-by-state guide on whether your state taxes unemployment, go here.
The IRS is, no doubt, very busy. But it should take the same amount of time as usual to receive a refund. This timeframe is generally less than 21 days (from the time the return is accepted) if you file electronically and set up direct deposit.
The average timeframe to receive a direct deposited refund has been two to three weeks for federal and one to two weeks for the state.
We don’t recommend you file a paper return, which can slow things down. Paper checks might take up to six weeks to arrive in the mail upon filing. Due to current delays, it may take months for paper returns.
Last year, there were two types of loans given out to businesses as pandemic relief: the Paycheck Protection Program (PPP loan) and the Economic Injury Disaster Loan (EIDL), the latter which included a grant and an advance.
Neither the PPP loans nor the EIDL is taxable income. For more information on small business Covid relief, visit the IRS website.
Unity Tax Service provides unparalleled personalized tax preparation services to a broad range of clients. As your certified tax prepares, we are here to ensure that all of your financial decisions are made carefully and with your best interests in mind. We are ready and able to serve as your tax planner and guide you down your path to success.
Click on the button below to learn more about your refund status. You will need your social security number to ITIN, your filing status, and your exact refund amount.
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