Got Stimulus in 2020? You’ll Need to Give Tax Preparer Extra Info
If you received stimulus checks this year, there's something your tax preparer needs to know.
Figuring out my own taxes is one of those tasks I've just come to accept that I'll never understand. Much like fixing my car's engine, it's one of those things that I don't have the patience to figure out, and even if I did it's too important of a job to screw up. So, when it comes to reporting to the IRS or keeping my car running I leave it to the professionals.
Even after surrendering all responsibility to my tax preparer, I've still been known to somehow mess up the process. It seems like every year there's some document or piece of information that I've forgotten to hand in. When my son was born I never even thought about bringing his Social Security number with me to the tax appointment. And I can't even remember how many years I've forgotten to bring mortgage statements or other important financial information.
This year, there's an important piece of information that most people don't realize will be asked by your tax preparer. According to Dave Lingardo from Taxpert Tax Service in Hopewell Junction, most people have no idea that they need to know exactly how much stimulus money they've received from the government.
For your 2020 taxes, you will need to know the exact amounts deposited into your account from the two rounds of stimulus checks that were sent out in April and January. While you're not getting taxed on the money, it does need to be reported. In some cases, people who received less than they're supposed to will be able to claim the missing money and receive it in their tax rebate check.
For single people making under $75,000 and married couples making over $150,000, it will be easy to figure out the amount because you most likely received the full stimulus. Those who make more than that, however, will have received a lower amount in their stimulus or no check at all, depending on how much they've earned. While the IRS has a link that allows taxpayers to see if they've received a check, it doesn't say what the amount was actually for.
Before you visit your tax preparer, you'll need to go back and check your bank statements to see how much money you received in your stimulus checks. Depending on your bank, those with direct deposits through the IRS can most likely find the transactions by simply pulling up their checking account online and typing in "IRS" into the search bar. Be sure to note the amount for each check and bring it with you when getting your taxes done.