Volume 5, Issue 4
Happy Love Day!

Volume 5, Issue 4
Happy Love Day!
The IRS has provided the following information regarding 2020 unemployment benefits and the 2021 tax filing season:
Unemployment benefits
A record number of Americans applied for unemployment compensation in 2020 due to the pandemic. Anyone who received unemployment benefits will need to report it on their tax returns.
However, the American Rescue Plan, enacted on March 11, 2021, excludes from income up to $10,200 ($20,400 if married filing jointly) of unemployment compensation received in 2020 for taxpayers with modified adjusted gross income under qualifying thresholds. Any amount over $10,200 is still taxable for each person. To determine if payments received for being unemployed are taxable, see the Interactive Tax Assistant on IRS.gov.
For those who have already filed their 2020 tax return and paid taxes on the full amount of unemployment compensation before the law was passed, they should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation.
The IRS will recompute any credits and deductions claimed on the original return. However, if the reduction of income now qualifies a taxpayer for a new credit not claimed on the original return, like the Earned Income Tax Credit (EITC), those taxpayers will need to file an amended tax return, Form 1040x, to claim the new credit. Taxpayers can see if they qualify for the EITC at IRS.gov.
Unemployment benefit recipients should have received a Form 1099-G, Certain Government Payments, from the agency paying the benefits. The form will show the amount of unemployment compensation they received in 2020 in Box 1, and any federal income tax withheld in Box 4.
Some states do not mail Form 1099-Gs. Taxpayers may need to get the electronic version from their state’s website.
Taxpayers who received an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits.
Taxpayers who are unable to obtain a timely, corrected form from their state should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid an unexpected federal tax bill for unreported income.
Additionally, if taxpayers are concerned that their personal information has been stolen and they want to protect their identity when filing their federal tax return, they can request an Identity Protection Pin (IP PIN) from the IRS.
Generally, by law, unemployment compensation must be included as income. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in 2020.
If a taxpayer didn’t report income from gig work or unemployment compensation on a return, a corrected return can be filed using Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X can be filed electronically.
Taxpayers who owe but can’t pay in full always have options to seek help through payment plans and other tools from IRS.gov/payments.
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Mary:
The IRS has provided the following information regarding 2020 unemployment benefits and the 2021 tax filing season:
Unemployment benefits
A record number of Americans applied for unemployment compensation in 2020 due to the pandemic. Anyone who received unemployment benefits will need to report it on their tax returns.
However, the American Rescue Plan, enacted on March 11, 2021, excludes from income up to $10,200 ($20,400 if married filing jointly) of unemployment compensation received in 2020 for taxpayers with modified adjusted gross income under qualifying thresholds. Any amount over $10,200 is still taxable for each person. To determine if payments received for being unemployed are taxable, see the Interactive Tax Assistant on IRS.gov.
For those who have already filed their 2020 tax return and paid taxes on the full amount of unemployment compensation before the law was passed, they should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation.
The IRS will recompute any credits and deductions claimed on the original return. However, if the reduction of income now qualifies a taxpayer for a new credit not claimed on the original return, like the Earned Income Tax Credit (EITC), those taxpayers will need to file an amended tax return, Form 1040x, to claim the new credit. Taxpayers can see if they qualify for the EITC at IRS.gov.
Unemployment benefit recipients should have received a Form 1099-G, Certain Government Payments, from the agency paying the benefits. The form will show the amount of unemployment compensation they received in 2020 in Box 1, and any federal income tax withheld in Box 4.
Some states do not mail Form 1099-Gs. Taxpayers may need to get the electronic version from their state’s website.
Taxpayers who received an incorrect Form 1099-G for unemployment benefits they did not receive should contact the issuing state agency to request a revised Form 1099-G showing they did not receive these benefits.
Taxpayers who are unable to obtain a timely, corrected form from their state should still file an accurate tax return, reporting only the income they received. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid an unexpected federal tax bill for unreported income.
Additionally, if taxpayers are concerned that their personal information has been stolen and they want to protect their identity when filing their federal tax return, they can request an Identity Protection Pin (IP PIN) from the IRS.
Generally, by law, unemployment compensation must be included as income. Taxable benefits include any of the special unemployment compensation authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in 2020.
If a taxpayer didn’t report income from gig work or unemployment compensation on a return, a corrected return can be filed using Form 1040-X, Amended U.S. Individual Income Tax Return. Form 1040-X can be filed electronically.
Taxpayers who owe but can’t pay in full always have options to seek help through payment plans and other tools from IRS.gov/payments.
Of course if you have questions or need to file your taxes, contact our office by emailing support@mtaustinandassoc.com
Many Happy Returns!
Join me and fellow business owners in releasing the financial frustration of owning your own business. We will gather in an intimate setting, release judgement and fear and be empowered and educated! Come as you are and I will share my 18 years of CEO wisdom to help you with:
Confidence
Better choices
Smart decision making
Making a profit in your business
We respect the need to budget so we are announcing in plenty of time to save or request a payment plan.
Sunday May 19th will be a special day of wealth, wisdom, and empowerment. here’s the link for more information and to sign up.
I hope to see you there!
Find the event on Facebook:
Let today be your first step towards financial freedom! Announcing our FIRST Webinar for individuals offered by our financialliteracy division, The Restoration Station on July 22nd.
We understand you’re as busy as we are so we’re delivering the online lesson in three 25 minute sessions. Easily digestible, stepbystep instructions on how to set up your own household budget.
You will receive a separate electronic worksheet for you and any children in your household to apply the tools you will learn in the class. You will also be invited to the follow up Q&A on #Facebook and #instagram #live!
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This is the only time this class will be offered at the introductory price. Sign up and let us help you get on the train to financial freedom. I’ll see you at the station!💙 #thekeytowealth #firststeps to #financialhealth
Listen to the podcast of my interview with C Thomas Gambrell II of Birth A New Business where I share my secret to sustaining a home based business as a single parent! Click below to hear it. I’d love your comments and feedback. Did you hear something that was useful to you as an entrepreneur? ⤵️
Welcome to Financial Freedom Press! It’s tax season and we will be sharing valuable information directly from the IRS website that will help you in filing your federal tax return. As always, MT Austin and Associates would be honored to provide your individual or small business, non-profit tax preparation services. We offer competitive pricing and personal attention. You can schedule a 15 minute consultation at your convenience by accessing our calendar HERE —> CALENDAR
or email us at austin@mtaustinandassoc.com. Wishing you Many Happy Returns!
Know these Facts Before Deducting a Charitable Donation
If taxpayers gave money or goods to a charity in 2016, they may be able to claim a deduction on their federal tax return. Taxpayers can use the Interactive Tax Assistant tool, Can I Deduct my Charitable Contributions?, to help determine if their charitable contributions are deductible.
Here are some important facts about charitable donations:
Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
Welcome to the Financial Freedom Press! This newsletter is a publication of The Restoration Station the financial literacy division of MT Austin and Associates,your accounting solution! The mission of The Restoration Station is to help place you on the right track to financial freedom. We offer FREE tools (tickets) and resources to support you on your journey to financial freedom and wealth!
Do yourself a favor – if you don’t have a personal shredder, purchase one. There are a number low cost shredders made for home use that range from $15-$75 ; the lower priced shredders are made to sit on top of a small wastebasket. Mail theft is still common, especially during the end of the year when tax documents and year end banking and investment statements are often mailed to clients. Shredding your documents with personal and financial information instead of throwing them in the trash will lower your chance of being a victim of identity theft and fraud.
Don’t forget to also shred your old credit cards and insurance cards instead of throwing them in the trash. Most shredders come with ability to shred credit cards. Once your shredder is filled, instead of dumping it in the trash, bag it up and donate it to your local pet shelter! The shelters often use shredded paper when they run out of kitten litter; you will feel good that you’re donating to a worthy cause and recycling at the same time!
I hope you have found this “tool” useful. Please comment below if you have questions or feedback. If you haven’t already, please subscribe to our blog, Financial Freedom Press to read the previous three tickets . We also invite you to visit The Restoration Station on Facebook for FREE resources and weekly live broadcasts with valuable tickets and information for the individual household and entrepreneur.
MT Austin and Associates , sponsor of The Restoration Station provides accounting, financial reporting and income tax services to corporations, non profits and individuals. If we can be of service, please do not hesitate to send a message to us from the contact page of our website. We appreciate the opportunity to be of service!
Welcome to the Financial Freedom Press! This newsletter is a publication of The Restoration Station the financial literacy division of MT Austin and Associates,your accounting solution! The mission of The Restoration Station is to help place you on the right track to financial freedom. We offer FREE tools (tickets) and resources to support you on your journey to financial freedom and wealth!
Insurance companies and doctor’s offices are not immune to making human mistakes yet most people don’t bother to look at the statements from their insurer before they pay the balance due or quickly file away the invoice when no payment is due.
Why is it important to check your health insurance bills? Your insurance bill could be an early detector of identity theft. Hospitals and doctor’s offices must request a copy of your identification and insurance card before they provide services. If you see a charge on your health insurance bill for an item, doctor, facility or date that you do not recognize it could be possible that someone used your identification. If you notice something wrong, contact the doctor or health facility’s billing department for a detailed description of the item. If you are certain that it was not your claim, contact your health insurance company immediately to request an investigation into the charge and correct the error.
If the health office confirms the person provided accurate identification and you suspect that you are a victim of identity theft, visit ftc.gov/idtheft to file a claim.
I hope you have found this “tool” useful. Please comment below if you have questions or feedback. If you haven’t already, please subscribe to our blog, Financial Freedom Press to receive the fourth ticket and visit The Restoration Station on Facebook for FREE resources and weekly live broadcasts with valuable tickets and information for the individual household and entrepreneur.
MT Austin and Associates , sponsor of The Restoration Station provides accounting, financial reporting and income tax services to corporations, non profits and individuals. If we can be of service, please do not hesitate to send a message to us from the contact page of our website. We appreciate the opportunity to be of service!