The IRS moved back the date when they started accepting and processing tax returns to February 12, 2021. But Tax Day is still on April 15, 2021. So that has my team hopping at OTB Tax! We are doing our best to help our clients understand their taxes this year.
We are getting a lot of voicemails and emails from clients in need of answers to their questions about their taxes. Let me ease your minds and answer some of the most popular questions we received lately.
Question: What are the economic impact payments?
Answer: Those are also called stimulus checks. Those were two different payments that you may have received, depending on your income. The first came in April and was $1,200 per adult and $600 for each qualifying child. The second came in December and was $600 per adult and qualifying child.
Question: Do we have to pay taxes on those stimulus checks?
Answer: You do not have to pay income taxes on those payments. They do not count as a part of your earned income.
Question: Is it too late to receive one now if I still didn’t get one?
Answer: If you did not receive yours, it can be a tax credit for you. File for a Recovery Rebate Credit and you get an increase in your refund or owe less in taxes.
Question: What are IRS Notice 1444 and IRS Notice 1444-B?
Answer: Those would be letters that came to you in the mail. They state the amount of money you received for each of the two stimulus checks.
Question: What if I don’t have either of those notices?
Answer: If you received payments as direct deposits, you can find the amounts in your bank statements. If you received checks in the mail, the IRS says you can create an online taxpayer account and see when the payments were made and how much you received each time. Click here to create your account: IRS View Your Tax Account.
Question: Is it better for me to just file online on my own this year?
Answer: I would highly recommend working with the experts at OTB Tax, especially for your 2020 taxes. Our package includes audit protection and someone to answer your questions and keep you up to date on the status of your tax return. Click here to learn the difference: How does Turbo Tax compare to OTB Tax?
Here’s to a more relaxing and less taxing life!