BATON ROUGE, La. (WAFB) - 2020 has been anything but normal, and that’s going to transition into the new year when you go to file your taxes.
If you are among those who were eligible to get a stimulus check, but it never arrived there is a way you can claim that amount on your taxes and get it in a separate refund.
“Those are technically credits against your 2020 tax and what that means, if you didn’t get the rebate, the stimulus payment you may be able to claim it and get an additional refund or reduce the liability on your 2020 tax returns,” said Terrell Martin, Senior Tax Manager at Hannis T Bourgeois.
Those stimulus payments are not taxable income, if you received unemployment benefits those are.
The same goes new parents. If you had a new little one in 2020 and never received a the initial $500 payment or the latest $600 check, you will be able to file that as a tax credit on your return and get it back as a separate refund.
If you took money out of your 401K to help with Covid related expenses, you will not be penalized for doing so but you will still have to pay taxes on that money.
“It’s still going to be taxable but the tax can be spread over three years so that’s one of the savings there,” Martin said.
If you received unemployment benefits those will be taxed as well.
Additional savings you could have on your returns:
You will be able to deduct up to $300 for charitable donations to an approved organization;
Teachers will be able to deduct expenses for PPE such as facemasks and hand sanitizer up to $250.
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