Tax Experts Warn About Potential 2020 Filing Issues

BOSTON – The upcoming 2020 tax season is looking to be very different this year for millions of Americans.

“Your tax return is reflective of your tax year, and this year the 2020 tax return will be of unparalleled complications, changes, and just different than anything tax payers have seen before for all the reasons 2020 was,” said Chief Tax Information Officer at Jackson Hewitt Mark Steber

Individuals who were laid off, became self-employed, or collected unemployment benefits could have a more challenging tax season than in years past.

“Unemployment benefits are tricky even in a regular year. In 2020 it’ll be even trickier, from the fact that those unemployment benefits are taxable, and go on a tax return and if you leave them off the IRS will probably be calling with a nasty letter,” said Steber.

Taxpayers are also advised to not include their stimulus money in their income, as it was not taxable. Steber also advises that not every American received the entire stimulus that they were due.

Steber encourages taxpayers to look out for errors the IRS may have made.

“Thinking the IRS in their infinite wisdom might sort it out, that will not happen,” said Steber

Also, those who’ve had life changes, such as having a child or custody disputes can claim the added stimulus money they are entitled to as a reconcilement .

Individuals with ITIN’s can also go back and claim money from the first stimulus that they were not eligible for at the time but now are due to law changes.

“One of the best practices in 2020 is to pay your taxes early,” said Steber.