Unemployment Refunds! IRA Contribution/ PPP2 Application Extensions! Scams & '17!
The Bottom Line:
IRS automatically refunding unemployment overpayment
IRA and HSA contribution deadline extended
PPP2 application deadline extended
College students/professors BEWARE
File your dang 2017 taxes!
2020 taxes, amiright? Chin up, friend! Lots of new spring growth:
Over 23 million people filed for unemployment last year — the American Rescue Plan rendered much of those funds non-taxable. But what if you already filed taxes before this went into effect March 11?
Simple: the IRS is planning automatic refunds, either repayment or application to other taxes owed, starting this spring.
You don’t need to file an amended return - but you may want to if the change to your total income makes you eligible for additional tax credits. The IRS has a good example here.
Regarding qualification: If your individual modified adjusted gross income is less than $150K — 2020 unemployment compensation up to $10,200 for Individuals and $20,400 for Married Filing Jointly (if both folks collected UI) is non-taxable. Sweet!
IRA HSA Contribution Deadlines Extended
You can contribute to an IRA or HSA until May 17!
You have an extra month to add $$ to your Individual Retirement Arrangements (IRAs and ROTH IRAs), Health Savings Accounts (HSAs) Archer Medical Savings Accounts (Archer MSAs), and Coverdell Education Savings Accounts (Coverdell ESAs). And if you took money, you can report/pay the necessary 10% tax until then as well. More words here but NSFW unless you’re a lawyer cuz #taxlanguagesodry. In short: YA GOT MORE TIME. Sweet!
Hey Small Businesses, you have up to May 31 now to apply for another round of PPP loans!
The PPP Extension Act of 2021 extended the deadline to apply for 1st or 2nd round Paycheck Protection Program loans. Sweet!
Students and Professors - look out
Latest from the scam-verse is a phishing email targeting .edu addresses: the email has a phake IRS logo, subject might be: "Tax Refund Payment" or "Recalculation of your tax refund payment," and asks for SSN, DOB, Driver’s License, blood type, one kidney -- you know the drill. GIVE NO INFO. (Get mo info here and here.)
File your dang 2017 taxes!!
The IRS has refunds totaling $1.3 billion for folks who didn’t file a federal tax return in 2017?! Handily, the American Rescue Plan also extended the date to file. Go claim your cabbage!
Keep swimming, friends!
2020 taxes have really Stayed Weird - but more time, helpful hints, and streamlined refunds let us know that the IRS and the government are working to help make #Taxtension Day a Good Day.