Are 2020 Stimulus checks taxable?
If you received round one and round two Economic Impact Payments, your stimulus checks are not taxable for both individuals and married filing joint couples.
What happens if I did not receive either Stimulus check?
If you were eligible for an economic impact payment and did not receive it, you can claim the credit on your 2020 tax return. The Notice 1444 included with your payment shows the amount you received. You may be eligible for additional credit on your 2020 tax return if you received less than the allowable amount and qualify for more.
Do I owe income tax if I withdrew funds from a retirement account in 2020 and I am under the age of 59 ½?
The CARES Act waived the 10% penalty for early withdrawal of retirement funds before the age of 59 ½, but you are still liable for income tax on the amounts withdrawn. The IRS will allow you to spread the income over three years or, if you are able, repay the funds withdrawn within three years.
I worked from home in 2020 due to the COVID-19 Pandemic; can I take a home office deduction?
The CARES Act did not change the tax rules for the home office deduction. If your compensation is received on a W-2, you cannot take a home office deduction. The Tax Cuts and Jobs Act suspended the home office deduction from 2018 through 2025 for employees. The home office deduction is currently allowed only for self-employed individuals and must also meet specific criteria to be deductible.
I do not itemize my deductions; can I still take a deduction in 2020 for my charitable contributions?
Yes. Taxpayers can now take a charitable deduction of up to $300 in cash/check donations regardless of whether they qualify for the standard or itemized deduction.
