Page 30 - AreaNewsletters "Mar 2021" issue

B U S I NE S S & F I NA NCE
How To Decide Whether to
File a Tax Return
By Janell D. Ball, Pro Accounting & Tax Services, llc
Most people with gross income of $12,400 or more must le a federal tax return. Some people with a lower income are not required to le. However, these individuals should still consider ling for a refund of federal income tax withheld. They may also be eligible for certain tax credits, like the earned income tax credit, the recovery rebate credit, and others.
Here are a few important things for taxpayers to know this year.
• Anyone who is eligible for an Economic Impact Payment but did not get the payments or did not get the full amount, must le a tax return to claim the recovery rebate credit even if they are not normally required to le.
• Unemployment bene ts are taxable. People should watch their mail for a Form 1099-G.
• There is a new rule to help people who lost their job or had a change in income in 2020. Filers can use their 2019 earned income to gure their earned income credit, if their 2019 earned income was more than their 2020 earned income. This new rule also applies to the additional child tax credit.
If the answer to any of the following questions is YES, a person might be due a refund, but they must le a tax return to get their money.
• Did an employer withhold federal income tax from their pay?
• Did the person make estimated tax pay- ments?
• Did they overpay taxes in 2019, and have their refund applied to 2020 taxes?
The IRS strongly encourages people to le electronically and choose direct deposit as we have all learned this is the fastest way to get your refunds and stimulus money.
Most people who are eligible have already received the full amount for the recovery
March 2021 • Castle Rock “AreaNewsletters” 30
In most cases, income, ling status and age determine if a taxpayer must le a tax return. Other rules may apply if the taxpayer is self-employed or can be claimed as a dependent of someone else.
Pro Accounting
& Tax Services, LLC
Janell D. Ball, Accountant Castle Rock, CO 80108
(303) 324-8617 Work
(303) 223-3303 Fax proaccountingtaxservices.com jdball65@gmail.com