Helpful Tax Tips and Useful Deductions
14 April, 2021
Filing your taxes breeds insecurity and anxiety for the average American. For 2020, nothing was the same, and this includes taxes. Even though April 15th is the official date for taxes in the United States, starting to collect and organize your finances now will pay off in the long run. Whether you are planning on doing it yourself or hiring a professional, be sure to check on these helpful tax deductions and tax filing tips.
Good news! Money from your stimulus checks is non-taxable. This means you don’t have to include this income on your yearly tax return. Check that you received, and kept your Notice 1444. This can give you more insight into your particular situation, you may even be eligible for a further stimulus in the form of a recovery rebate.
Filing your taxes before the month of April can give you drastically faster returns. If you are a person/household that expects to receive money back, you won’t want to wait on the long “lines” that form after April 15th. The sooner the better in this scenario. Filing earlier can also affect the amount of your potential stimulus check for 2021. With any updated information, loss of income, added dependent, etc, your household could be eligible for more. When all else fails, file an extension. An extension gives you 6 more months to finalize your financial items. This is a lesser-used technique and has no penalties! Save yourself some stress and check out the form for an extension.
Did you know that you can utilize a home office deduction? Because of so many people working from home in 2020, you may be eligible for the upgrades and changes you made to your house. New computer? Desk chair? Maybe even construction, can all be written off. Learn more about how to spruce up your home workspace.
This is a widely overlooked tax credit that 25% of eligible people fail to utilize each year. 2020 could prove to be the largest batch of Americans that are able to use this on their taxes. Some of the qualifications include those who lost a job, took a pay cut, or worked fewer hours during the year. Sound familiar?
Filing your taxes can be a stressful activity, but with these helpful tips and useful deductions, you may actually breathe a sigh of relief when the process is over! Keep checking back to the Kratos Gas and Power Blog for lifestyle posts everyone can use!