2020 Tax Year Tips and Recovery Rebate Credit
The 2020 Tax Year is here!
Here are few tips to get you started
• Most income is taxable, so gather your income documents, such as Forms W-2 from employers, Forms 1099 from banks and other payers, records of virtual currencies or income from the gig economy.
• If you received an Economic Impact Payment, you should’ve also received EIP Notice 1444. This notice will be helpful to have when you prepare your 2020 federal tax return.
• Review information from your most recently filed tax return through your account information online.
Notify the IRS if your address changes and notify the Social Security Administration of a legal name change.
Remember, most income is taxable. This includes:
• unemployment income,
• refund interest,
• income from the gig economy, and
• virtual currencies.
Recovery Rebate Credit
You may be able to claim the Recovery Rebate Credit on your Tax Year 2020 Federal income tax return if you met the eligibility criteria in 2020 and:
• You didn’t receive an Economic Impact Payment, or
• Your Economic Impact Payment was less than $1,200 ($2,400 if married filing jointly for 2019 or 2018) plus $500 for each qualifying child you had in 2020.
• For additional information about the Economic Impact Payment, visit the following link
https://www.irs.gov/coronavirus/economic-impact-payment-information-center
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