How the pandemic could impact your 2020 taxes
EAU CLAIRE, Wis. (WEAU) - Last night we rang in the new year… and tax season. While it’s probably not something most people are excited about, it may need more of your attention this year.
Tax preparers are urging people not to procrastinate this year. They say if your 2020 looked different, your taxes might too. Owner of Action Tax Service in Eau Claire, Lori Peabody, has been doing taxes for over 40 years. She told WEAU,
“If you’re lucky enough to where your work wasn’t affected by COVID, there could be little difference.”
However, millions of Americans were not lucky in that sense last year. She anticipates some major changes to this tax season.
“Unemployment is an issue if you have not been on unemployment before you might have problems if you did not have withholding taken out.”
Along with unemployment, 2020 featured trends such as suspending mortgage or student loan payments and taking on multiple jobs. These could change what your taxes look like too.
“I would not be surprised if we got more phone calls. People who have been doing their own might all of a sudden owe and think they made a mistake.” Peabody said.
With more calls expected to come in, it may put some businesses in a bind.
“I was just emailing with one of my preparers and he found that he is unable to work full-time because his children are home for school and he needs to be with them … I would suggest wherever they go that they consider that their preparer may be having similar problems and that they make their appointments early or check with them to see what their changes might be.”
Finally, some good news for those who were eligible but have not received the first stimulus check from March. Peabody says filing can fix that.
“There will be a place to reconcile if you didn’t get your full stimulus package last year”
For now, the deadline remains as April 15th, but has the potential of getting pushed back, as it did last year.
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