What You Should Know About the 2021 Tax Season
Stimulus Payments are Not Taxable
The IRS sent out two rounds of stimulus payments, one in March 2020 and another in late December and early January. If you received a stimulus payment, rest assured it won’t be considered taxable income. Also, if you received more money than you qualify for based on your 2020 income, you wouldn’t have to repay the funds.
Unemployment Benefits are Taxable
Home Office Deduction is Not for Everyone
If you worked from home because of the pandemic, you might assume you automatically qualify for the home deduction. Unfortunately, you can’t deduct work-related expenses if you’re an employee on an employer’s payroll. A home office deduction is only an option if you’re a freelancer, entrepreneur, or another self-employed individual.
RMDs Require Special Attention
Charitable Deductions May Save You Money
Consult Your Tax Professional
We encourage you to meet with your tax professional. In order to determine how these tax changes may affect you during this 2021 tax season.
SWG 1558093-0321a
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