Tax Documents Checklist

Did you collect unemployment compensation from a state or local government assistance program?

Unemployment compensation can provide valuable relief when taxpayers are experiencing temporary job loss, but there’s often an unpleasant surprise that follows these payments: This income is taxable at the federal level. If you don’t have taxes withheld from the payments, you may owe a big tax bill when you file your return. If you received unemployment payments during the year you should receive Form 1099G, Certain Government Payments. The amount of unemployment compensation you received from all sources, including federal, state and local government assistance programs, will be shown in Box 1 of this form; the amount of federal tax that

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What is the Recovery Rebate Credit?

Many taxpayers received Economic Impact Payments during 2020 and 2021 in response to difficult economic conditions caused by the COVID-19 pandemic. If you have not yet received the third payment from the 2021 stimulus, you should be able to claim it on your 2021 tax return but the deadline to do this is April 15th, 2025. The deadline to file a 2020 tax return and claim a 2020 stimulus was May 17th, 2024. Due to the coronavirus epidemic, the U.S. Treasury Department issued an Economic Impact Payment (EIP) to eligible taxpayers twice during the 2020 tax year. The amount of each

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How to file for a federal or state income tax extension

Client figuring out how to file for a state extension

Please note, E-file.com provides software to prepare federal tax extensions. However, we do not provide software for state/local tax extensions. With every purchase of our extension software we include free software to prepare and file a tax return once the taxpayer is ready to file. The federal extension (form 4868) must be filed and/or mailed with your estimated payment by the April 15th deadline. Most states, which require taxpayers to file an income tax return, use the federal deadline of April 15th (unless the 15th falls on a weekend or a holiday.) If your state requires that you file a return and you believe you will not be able

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Taxpayer COVID-19 FAQ

Many users have questions regarding the change of the tax filing deadline and the economic stimulus payments the U.S. government is sending to American taxpayers. The following is being provided to help answer some of the most frequently asked questions. Please keep in mind, this situation is evolving and some information/guidelines will change. REGARDING THE THIRD STIMULUS CHECK : The third stimulus check under President Biden’s American Rescue Plan provided up to $1,400 per eligible taxpayer, plus $1,400 for each eligible dependent.  According to information provided in the IRS press release the “official payment date” when taxpayers saw payments go out was

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The New Simplified 1040 Tax Form

Simplified 1040

Several versions of the 1040 tax form have been consolidated into one simpler version that all taxpayers can use. Previously, there were three versions of the 1040 form. The redesigned 1040 form from the IRS is only half a page long on two sides.

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Do I pay taxes on my unemployment benefits from when I was out of work?

Unemployment benefits come from an insurance fund worked out between the federal, state and local governments. When you file for your unemployment benefits, you should be able to choose to have your federal taxes withheld.

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At what point should my dependent file his/her own tax return?

ou have a child under the age of 19 or under the age of 24 and a full-time student, you should be able to claim the dependent if certain criteria are satisfied. However, the dependent must not provide more than half of their own financial support.

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What is the marriage penalty?

With marriage and a decision to file a joint tax return, instead of separate individual returns, comes a different set of tax brackets. It is commonly referred to as the marriage penalty when the joint tax filing brackets result in a greater tax liability than the individual brackets would have otherwise created.

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If a taxpayer works overseas, do they pay federal taxes on the income? What forms need to be completed?

Taxpayers and overseas work

Whether you are only spending six months or spending several years working abroad, as long as you remain a US citizen, you must still file a U.S. federal tax return, and in most cases, pay income taxes on the money you earn while abroad.

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Bitcoin and tax liability

Bitcoin’s tax treatment is different than that of legal tender (dollars). It is subject to tax in the same way the receipt of property is subject to federal tax.

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