Able-Wagner Tax

IRS: Unemployment compensation is taxable; Have tax withheld now and avoid a tax-time surprise WASHINGTON With millions of Americans receiving taxable unemployment compensation, the IRS today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year. By law, unemployment compensation is taxable and must be reported on a 2020 fed...eral income tax return. Withholding is voluntary. Federal law allows any recipient to choose to have a flat 10% withheld from their benefits to cover part or all of their tax liability.

IRS pending check payments If you mailed the IRS a check, it may still be unopened in the backlog of mail the IRS is processing due to COVID-19. Any payments will be posted as the date IRS received them rather than the date the agency processed them. To avoid penalties and interest, taxpayers should not cancel their checks and should ensure funds continue to be available so the IRS can process them.... Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending. See www.irs.gov/payments for options to make payments other than by mail.

Attention teachers: Those school expenses might be tax deductible School may look a little different this year, but eligible teachers and other educators can still deduct certain unreimbursed expenses on their tax return next year. Who is considered an eligible educator:... The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. Things to know about this deduction: Educators can deduct up to $250 of trade or business expenses that were not reimbursed. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction. Examples of expenses the educator can deduct include: Professional development course fees Books Supplies Computer equipment, including related software and services Other equipment and materials used in the classroom

Our 39th tax season is in the books. It was the longest in history but we made it through and everyone stayed healthy! Charlie visited from his home office for a bit in honor of the big day. Thank you so much to our amazing staff and loyal clients! We appreciate you!

Taxpayers should file on time even if they can’t pay their full tax bill Otherwise, they may end up owing even more because penalties and interest can cause a taxpayer’s debt to grow. If a taxpayer owes taxes, but can’t pay by the July 15, 2020 deadline, they should:... File their tax return or request an extension of time to file. Taxpayers who can’t file their return on time, should request an extension to file. Without this extension, they may face a failure-to-file penalty. Pay what they can by the 7/15 deadline. Set up a payment plan Taxpayers who know they owe taxes but can’t pay by the deadline have options. For example, they can apply for a payment plan on IRS.gov.