Mississippi accountants answer frequently asked questions about filing for the upcoming tax season
It’s tax season again, and this year many people have a new challenge when it comes to filing a return.
From unemployment to stimulus checks to working from home, many Mississippi accountants want to make sure their clients are on the right track.
As people plan to file their 2020 taxes, many expect this year’s filings to be a little different, and accountants are aware of that.
”The pandemic is definitely a hardship to many and when it comes to tax season it’s a hardship to many because a lot of people have been out of work,” said L.J. Brooks, Accounting Manager of ABS Tax in Macon, Mississippi.
He says there are some things people should know when filing this year
“Individuals that get unemployment they must file it on their taxes, they will receive a 1099-G which is unemployment compensation,” said Brooks.
“Stimulus money will have to be filed as well, it is government money it has to be filed and it will serve as a credit on your tax return.”
Brooks and his staff are eager to work with those preparing to file their taxes and also want people to know they don’t just have to file for the past year.
He went on to say, “Individuals have the opportunity to file their wages from 2019 on their 2020 taxes that is a plus for a lot of Americans.”
Brenda Martin, an accountant with Columbus, Mississippi-based M&M Tax Service also had some tips on how people should go about reporting for this past year.
She says, “If you go out and you’re running errands in your car just for you from working from home you can write that mileage down and take those deductions, but it got to be for the business it can’t be for your personal stuff.”
As for stimulus checks and unemployment wages, Martin encourages everybody to report their earnings completely and honestly.
“They have to be correct. The IRS goes over everybody tax return with a fine-tooth comb so it’s best not to try to fool them and add extra stuff you can’t prove”.
Brooks and Martin say people need to be transparent about what they earned, what they spent, and what they owe.
The tax deadline for 2020 is Monday, April 15th.