JONESBORO, Ark. (KAIT) - If you received unemployment benefits, you might be wondering how to properly file your taxes. An accountant says if your situation is complex, seek the help of a professional.
In the mail, you should get your 1099-G form. If you did not, contact the unemployment office.
What you may or may not owe all depends on your situation, like your filing status, income, and if you’re going to itemize or take a standard deduction.
Tammy Lee, a certified public accountant for HCJ CPAs and Advisors, says if it takes you for a shock that you have to pay, don’t panic. There are different installment agreements you can enroll in.
“If you do owe taxes and weren’t expecting to make sure you get the help of a professional to communicate with the IRS and determine what options you have. Avoiding the IRS is never a good idea,” said Lee.
Right now, unemployment is taxable for both the state and federal. Still, Gov. Asa Hutchinson may sign a Senate bill, SB236, that would make benefits not taxable in the state, meaning you would just have to pay federal.
Lee adds that there is a recovery rebate credit. If you didn’t receive the full amount of your stimulus check, you can apply and get more money back.
Lee advises people to file as soon as possible. The tax deadline is April 15.
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