GREENSBORO, N.C. — When you hear taxes, you should think May 17.
Why? Because that's the extended filing deadline and it's only ten days away!
Kevin Robinson with Robinson Tax Services answers questions about the tax season ahead of the filing deadline.
I filed unemployment last year. Will I have to pay taxes on that?
No. President Joe Biden's American Rescue Plan is forgiving taxes on unemployment benefits for anyone making less than $150,000 per year. Up to $10,200 in unemployment benefits will not be subject to taxes.
That being said, you will need to add unemployment benefits to your state benefits.
If you're filing, the IRS is now accepting tax returns with the exclusion of unemployment benefits.
I waited to file after April 15. Will the state charge me interest?
No! The state is no longer charging interest if you waited to file after the April 15 deadline.
3 Things to Know about filing:
- $300 charitable deduction available to everyone even if you do not itemize.
- 1st and 2nd stimulus payments can be included on your 2020 tax return if you did not previously receive it.
- You can use your prior year earned income if it gives you a better answer on your child tax credit and earned income credit.
I never received my stimulus check. What do I do?
If you didn't get a stimulus check, you can claim that on your taxes and get the money. It is line 30 on the tax form, under "Recovery Rebate Credit."
What is the Earned Income Tax Credit?
The Earned Income Tax Credit, which is one of the most overlooked credits every year, had some pro-taxpayer changes too in the American Rescue Plan Act of 2021. For the first time, taxpayers without children will be able to get nearly triple of last year's amount. It's the largest expansion to EITC since 2009 – which is huge for taxpayers who now qualify for the credit. The Credit is now up to $1,502 per taxpayer (up from about $543 in prior years).
- The minimum age to claim the childless EITC has been reduced from 25 down to 19.
- The maximum income for the childless EITC has increased, meaning more taxpayers will qualify.