Your COVID-Related Tax Questions: Answered
Your COVID-Related Tax Questions:, Answered.
With tax season upon us, many are wondering how their new
work-from-home status might affect their 2020 tax returns. .
Here are six of the most-asked COVID-related
tax questions answered by tax professionals.
1. Do I qualify for the
home office deduction?.
You do qualify if you’re self-employed or an
independent contractor. If you get a W-2 tax
form from your employer, you don’t qualify.
2. Are there any new deductions
I could be eligible for?.
If you qualified for but didn’t receive either of the stimulus checks
in 2020, you’re eligible for the Recovery Rebate Credit. .
3. If I work from home in one state
but my employer is in another, which state
income taxes do I pay?.
You typically only pay income taxes in the state you reside in.
If you performed work in both states before moving to a
remote setup, you need to pay income taxes in both. .
4. I temporarily moved
to a different state in
2020. How does this
impact my taxes?.
Even if your move was only temporary due to COVID-19,
you may still owe taxes in that state too. The longer your stay,
the more likely you have a tax obligation. .
5. Do I need to pay taxes if I
worked part-time and received
unemployment benefits or
compensation from a
work-share program? .
Yes, because compensation received from a work-share program
or Pandemic Unemployment Assistance is taxable income. .
6. Do I need to pay taxes on the stimulus
check I received in 2020? .
The stimulus check is not taxable income and
won’t factor into your refund or any taxes you owe.
You do still need to record it on your tax return.
With tax season upon us, many are wondering how their new
work-from-home status might affect their 2020 tax returns. .
Here are six of the most-asked COVID-related
tax questions answered by tax professionals.
1. Do I qualify for the
home office deduction?.
You do qualify if you’re self-employed or an
independent contractor. If you get a W-2 tax
form from your employer, you don’t qualify.
2. Are there any new deductions
I could be eligible for?.
If you qualified for but didn’t receive either of the stimulus checks
in 2020, you’re eligible for the Recovery Rebate Credit. .
3. If I work from home in one state
but my employer is in another, which state
income taxes do I pay?.
You typically only pay income taxes in the state you reside in.
If you performed work in both states before moving to a
remote setup, you need to pay income taxes in both. .
4. I temporarily moved
to a different state in
2020. How does this
impact my taxes?.
Even if your move was only temporary due to COVID-19,
you may still owe taxes in that state too. The longer your stay,
the more likely you have a tax obligation. .
5. Do I need to pay taxes if I
worked part-time and received
unemployment benefits or
compensation from a
work-share program? .
Yes, because compensation received from a work-share program
or Pandemic Unemployment Assistance is taxable income. .
6. Do I need to pay taxes on the stimulus
check I received in 2020? .
The stimulus check is not taxable income and
won’t factor into your refund or any taxes you owe.
You do still need to record it on your tax return.
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