CLEVELAND — Filing your 2020 taxes may look a lot different due to the coronavirus pandemic.
It starts with unemployment, something that could impact your refund, according to Dana Goldstein, Staff Attorney for Community Legal Aid Services in Akron.
“It's taxable, so a lot of people think unemployment because it's not from your employer but it is a matter of public benefit is some sense from the federal and state government is not taxable but that is not true.”
Goldstein says unemployment is considered a replacement for income, therefore, taxable. More than 2 million Ohioans filed for unemployment since the pandemic hit. As for stimulus payments, Goldstein says, those are not taxable.
“That is because they are just a public benefit there is a special provision, they are not taxable and you don't have to report them and the IRS knows that everyone receives 1200 for adult etc.”
If you think you got short changed on stimulus money, it's possible the IRS doesn't know about life changes – like a new child, dependent status or significant change in income.
Chief Tax Expert for H&R Block, Kathy Pickering says, “you'll be reporting if you received the first stimulus payment, the second stimulus payment and if you thought you were entitled to more.
And what about full-time employees working from home due to coronavirus - can they deduct their home office?
“Yes, they can but there are really strict requirements for deducting home office expenses and it has to be exclusively used for the home office,” said Goldstein.
For example, if you have a television in your new home office, but you use it in part for your family's benefit - that could disqualify you.
If you want your tax refund quickly, experts say it is best to file electronically. Remember, the IRS will start accepting tax returns, on Friday, February 12.