INDIANAPOLIS — In less than two weeks, tax filing season begins and while it is a later start than normal, one local tax expert says many things are the same.
Regardless, WRTV posted on social media asking for your questions about taxes in 2021 and Michael Jamison with OnTarget CPA helped us answer them.
Jamison said after 2018 tax law changes, there are no tax benefits for those that worked from home. The exception, he said, is for independent contracts or those that receive a 1099.
As for an extension on the tax filing date, Jamison said that is still April 15.
“Pending further changes by the government,” Jamison said. “Obviously you can file an extension which gives you an extension of time to file, but not an extension of time to pay.“
Jody commented on WRTV’s Facebook post asking about unemployment and taxes. Jamison said “all of it is taxable for federal purposes.”
“Let’s say you owe $5,000 and don’t have that money," Jamison said. "That’s something the IRS will work with you. The worst thing you can do is just ignore it.”
Jamison’s advice this tax season is to file early, electronically, and to ensure if someone else is preparing your taxes that they are licensed.
Early this week, Jamison spoke about stimulus checks and how to utilize the Recovery Rebate Credit to get both checks if you haven’t already. You can find that story here.