BEFORE YOU FILE. JESSICA: FOR TAXPAYERS HOPING FOR DEDUCTIONS, CREDITS AND COVID-19 RELIEF ON THEIR 2020 CONTRIBUTIONS EXPERTS SAY FILE EARL LAST YEAR WAS A BIG YEAR AND THEY’RE JUST TRYING TO GATHER ALL THEIR DOCUMENTS. SO I ALWAYS SAY, IF YOU DO HAVE A BUSINESS, MAKE SURE THAT FROM THE BEGINNING YOU’RE WORKING WITH A PROFESSIONAL. JESSICA: IF YOU DIDN’T ALREADY RECEIVE COVID RELIEF PAYMENTS FROM THE FEDERAL GOVERNMENT FILING YOUR TAXES WILL BE THE BEST WAY TO GET THAT MONEY IF YOU’RE ELIGIBLE. EXPERTS ALSO SAY IT’S IMPORTANT TO KNOW WHEN TO SEEK PROFESSIONAL HELP. I DO BELIEVE THAT TURBO TAX OR THOSE OTHER PROVIDERS WILL SUFFICE AND THEY ARE VERY EASY AND VERY COST EFFECTIV BUT AS SOON AS YOU HAVE A BUSINESS, RENTAL PROPERTIES SEEK PROFESSIONAL ADVICE. JESSICA: HERE’S A LOOK AT THREE TAX BREAKS YOU MAY BE ELIGIBLE FOR THE FIRST TIME DUE TO COVID. ONE CONGRESS MADE CHANGES TO TAX BENEFITS LIKE THE EARNED INCOME TAX CREDIT THEY CREATED NEW ONES TO GIVE PEOPLE AND SMALL BUSINESS OWNERS SOME PANDEMIC RELIEF TWO SMALL BUSINESS OWNERS WHO RECEIVED A TAX-FREE FORGIVEN PPP LOAN MAY STILL DEDUCT THE BUSINESS EXPENSES THEY PAID FOR WITH THEIR MONEY THREE –IF YOU’RE SELF-EMPLOYED YOU MAY BE ELIGIBLE TO CLAIM A NEW SICK LEAVE AND FAMILY LEAVE TAX CREDIT THAT WAS CREATED BY THE FAMILIES FIRST CORONAVIRUS RESPONSE ACT. AS OF NOW, THERE IS NO INDICATION THE DEADLINE FOR FILING WILL BE EXTENDED LIKE IT WAS LAST YEA SO, PLAN ON FILING BY APRIL 15 OR REQUESTING AN EXTEN
Three things you should know before filing your taxes in 2021
For taxpayers hoping for deductions, credits and COVID-19 relief on their 2020 contributions, experts say file early.“Last year was a big year, and they’re just trying to gather all their documents,” said Ana Klein, a CPA with AKK Tax and Accounting. “So, I always say, ‘If you do have a business, make sure that from the beginning you’re working with a professional.’”If you didn’t already receive COVID-19 relief payments from the federal government, filing your taxes will be the best way to get that money if you’re eligible. Experts also said it’s important to know when to see professional help. “I do believe that TurboTax or those other providers will suffice, and they are very easy and very cost-effective,” Klein said. “But, as soon as you have a business, rental properties, seek professional advice.”Here’s a look at three tax breaks you may be eligible for because of the COVID-19 pandemic.Congress made changes to tax benefits like the earned income tax credit. They created new ones to give people and small business owners some pandemic relief.Small business owners who received…
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