GREENSBORO, N.C. — The IRS started processing tax returns as of Friday, February 12. There’s a lot of misinformation going around, so 2WTK is answering your three most common questions (and a few more!).
Is your stimulus money taxable income?
No, it's not. You will put in how much you got from the stimulus payments, but it’s not so you can pay taxes on it, it’s to make sure you got all of the credit.
If you didn't get all of the stimulus checks, can you still get the money you missed out on?
Yes, you can, but you'll need to file taxes to do it. It's line 30 on the tax forms and it's called the Recovery Rebate Credit.
What if you don’t normally file taxes?
Even if you don't file taxes, you'll have to in order to claim the rest of the stimulus money. The good news is, the IRS has many different ways for you to e-file for FREE.
Do I have to pay taxes on my unemployment benefits?
Yes. The hope is, you already had taxes taken out of your unemployment benefits, but if you didn’t, you will pay taxes on them on your return.
“Unemployment benefits whether they are through The Cares Act or the state of residence are totally taxable. Now, some people have withholding and that is good, but on the federal side are taxable,” said CBS Business Analyst Jill Shlesinger.
If you got unemployment last year, you will need the 1099-G form from the unemployment office to file your taxes. Chances are you got an email from the Department of Commerce about it. In the email, it tells you to log into your account. When you do, you'll see ‘View My 1099-G’.