With tax season arriving later than normal, some may not see their refund checks until later.
The IRS postponed opening income tax returns until Friday, Feb. 12 this year, due to COVID-19. The date is approximately two weeks later than when returns would be accepted in a normal year.
However, three local tax professionals still urged anyone filing taxes to get them ready early.
“That’s going to delay refunds until the end of February,” said Tallulah Tax Service owner Susan Sawyer Jenkins. “We urge everybody to go ahead and file.”
Jenkins pointed to several differences between the 2020 and 2019 tax seasons, including some deductions that could be claimed due to the coronavirus pandemic.
She said if anyone’s income was lower in 2020 than in 2019 due to the pandemic, they could report their 2019 income on the return for their earned income credit.
“That will result in a larger refund,” Jenkins said.
Jenkins also spoke to another coronavirus change, allowing amounts of up to $300 donated to charity to be non-itemized.
“That can be added to their standard deduction,” Jenkins said.
Jenkins said that those who drew out of their retirement due to the pandemic would not be charged the 10 percent penalty normally associated with using retirement early.
Eller’s Tax Service owner Teresa Eller said stimulus checks should also be listed, and that anyone who did not receive one of their two checks should receive it in their refund.
“They are both listed on the tax refund,” Eller said.
Eller also spoke to a rule for teachers, allowing them to include pandemic-specific supplies under their $250 classroom supply deduction.
This includes masks, gloves, sanitizers and similar supplies.
Hometown Tax and Accounting Services enrolled agent Terri Phillips said some specific deductions also existed for children and who have been affected directly or indirectly by the coronavirus.
“If you’ve got kids or if you’ve got a business, there’s just a lot of stuff you can do,” Phillips said.
She also said the most common areas she saw taxpayers run into trouble with the IRS were issues with child tax credits, earning tax credits and insurance tax credits, saying issues an any of those three areas would automatically trigger a letter from the IRS.
“They need to know what the IRS is requiring of them,” Phillips said. “If they don’t know, they can check with us, or with IRS.gov. We’re always glad to help.”
Eller also said some people were surprised by taxes they did not realize they had to pay.
“Self-employment is basically a big surprise to some people, because they pay 15.2 percent,” Eller said. “It’s rather expensive sometimes.”
Eller also expressed concerns about the refunds coming later, saying that some people were counting on the money.
She said refunds were scheduled to come in March.
“It makes a big difference for the folks that depend on it, “ Eller said.