How covid may impact your taxes

Courtesy: QuoteInspector

MISSOULA, Mont. - February 12 will mark the beginning of tax season. This year, your tax preparation may look different due to the pandemic. 

Jesse Barnes, CPA at Tompkins & Peters CPAs, said it's going to be an interesting year because there have been so many changes in result of the pandemic. One major change will be for those who missed out on their stimulus checks. 

"Most people have already received their stimulus payments as a result of the packages that were passed," Barnes said. "However, if you haven't received your stimulus payment yet, it will be coming with your 2020 tax fund." 

There are a list of other big changes, he said. People who had to pull money out of their retirement fund this year because of COVID-19, will not have the usual penalties. Those who were able to donate to charities are eligible for extra credits. For those who received unemployment, it's important to know that this income is taxable, and if there weren't withholdings, they will be responsible to pay those taxes when they file their return. 

Of all years, this may be a good one to get help, Barnes said. 

"One of the biggest mistakes is not reaching out for help sooner than later," Barnes said. "Taxes are complicated. They get complicated quite quickly. So, it's one of those things that is good to use a professional... unless you have a basic tax return that is basically just a W-2, it's good to be in contact with someone."

If you do prepare your own taxes, Barnes recommends doing a quick google search of what the changes are for this year, so you can be aware. 

Taxes are due April 15. 

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