The IRS has notified all taxpayers and tax professionals that updates to vital federal tax forms and instructions have been completed and will be accessible for Taxpayers to review and utilize before they begin to file their taxes.
Optima Tax Relief helps taxpayers prepare for their 2020 tax returns by going over last-minute changes to tax laws included in IRS forms and instructions.
Individuals who use IRS Form 1040 or Form 1040-SR should receive Forms W-2 and other additional earnings information from their employers and payers. Due to alterations made to the IRS tax laws, forms and instructions have additional updates that should be read carefully in order to ensure that your taxes are filed accurately.
Important updates have been made to the Recovery Rebate Credit which includes a worksheet that involves instructions for Forms 1040 and 1040SR. Individuals who have yet to receive the full amount of either of the Economic Impact Payments distributed out by the IRS should include the amounts that they received, before any offsets, when they file their taxes. Taxpayers who received the full amount of their Economic Impact Payment should not include information about the advance payments when filing their taxes.
Current Economic Impact Payments are automatic for qualifying taxpayers
The IRS has sent out their second round of Economic Impact Payments to assist millions of Americans who are struggling to stay financially above water.
Taxpayers who received their full payment don’t need to take action. Economic Impact Payments are automatic for eligible taxpayers who filed their 2019 tax return and those who receive Social Security retirement, survivor or disability benefits, Railroad Retirement benefits, Supplemental Security Income, and Veterans Affairs beneficiaries who typically don’t file their taxes.
Individuals who did not receive their Economic Impact Payment for either their first or second payment are eligible to claim a Recovery Rebate Credit when they file their 2020 taxes this year. It is important for taxpayers to review the eligibility criteria when their file their 2020 tax return. Many individuals, including recent college graduates, may qualify for this credit.