With the ongoing COVID-19 outbreak, taxes may not be at the top of your mind. Even if they are, you may not want to travel outside your house for tax preparation help. Here’s what you need to know to file your taxes in 2020.
Volunteer Income Tax Assistance (VITA) is an IRS-sponsored, free tax-filing program across the country that helps people with low incomes file their taxes. For this year’s VITA Awareness Day (March 16), we wanted to highlight some VITA programs that have continuously done great work for communities and families with low-to-moderate incomes.
Like wages, unemployment benefits are counted as part of your income and must be reported on your federal tax return. Unemployment benefits may or may not be taxed on your state tax return depending on where you live. Regardless, you must pay federal taxes on your unemployment benefits.
The IRS recently sent out Letter 6419 to those who received Advanced Child Tax Credit payments in 2021. To get the second half of the Child Tax Credit, you will need to report the total amount of the payments you received on your 2021 tax return. For a small number of people, the amount shown on their Letter 6419 (Advance Child Tax Credit Payments Letter) may be incorrect.