New tax deductions and rules that could cost you money, 7 On Your Side explains
NEW YORK (WABC) -- This year's tax day has been pushed back more than a month, until May 17.
There are some deductions and rules that could cost you big bucks if you don't know about them.
It's a question 7 On Your Side is being asked a lot - where's my tax refund check?
7.6 million haven't been processed yet so far this tax season. That's nearly three times the number during the same period last year.
More 7 On Your Side | Widow gets husband's headstone thanks to 7 On Your Side
For an updated status, the IRS is advising don't call them, instead, go online to "Where's my refund" for the best information.
Another popular question is are stimulus checks considered taxable income? The answer is "no," your $1,400 will not be taxed.
People are also wondering, what they should do if for some reason they never received any stimulus checks?
The good news is you can file for any missing money on your 2020 taxes, just fill out the "recovery rebate credit."
Also, a big tax worry is concerning unemployment benefits. It was announced recently that up to $10,200 of unemployment compensation is exempt from federal taxation as long as your income is under $150,000.
"It's a really powerful change and it's very important for Americans who did receive unemployment to make sure that this exclusion holds true for them, because not only will it guarantee they have a higher tax liability if they are going to get a refund, they will get a higher refund back," said Sheneye Wilson, CPA, The People's Accountant.
On the state level, New Jersey doesn't tax unemployment. But, New York is one of 20 states that DOES tax unemployment benefits.
Also, get ready for write-offs. New deductions just announced include PPE, including masks, wipes, and hand sanitizer to help prevent the spread of COVID. The IRS says they fall under deductible medical expenses but you will have to be itemize purchases.
"Are we writing these off? What a funny things to ask. If you are a business owner and are buying masks for not only you but your staff, your mask can be a deductible business expense since it is ordinary and as COVID necessary and that can be docked as business supplies," Wilson said.
Also, the child tax credit has been expanded. The credit, usually $2,000 per child under age 17 has been boosted. You may qualify for up to $3,000 per child 17 years of age and under or $3,600 per child under age 6.
More 7 On Your Side | What to know about grocery store and food delivery app fees
----------
SHARE YOUR STORY
Do you have an issue with a company that you haven't been able to resolve? If so, 7 On Your Side wants to help you!
Fill out the form below or email your questions, issues, or story ideas by filling out the form below or by emailing 7OnYourSideNina@abc.com. All emails MUST INCLUDE YOUR NAME AND CELLPHONE NUMBER. Without a phone number, 7 On Your Side will not be able to respond.
