Coronavirus Stimulus Checks: Here’s What IRS Wants You to Know Before 2020 Taxes

In 2020, there were many who received refunds after they filed their 2019 return by the July 25, 2020 deadline. Such taxpayers also were paid interest, because the tax filing deadline was extended due to the coronavirus pandemic[6].

As per the IRS, such interest payments are taxable and the taxpayers need to report it. The IRS will be sending out Form 1099-INT to those who received interest of $10 or more.

Separately, the agency also reminded taxpayers of a new charitable[7] deduction change. As per the IRS, the taxpayers who don’t itemize deductions can deduct up to $300 in donations to qualifying charities without the need to itemize.

“We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve,” IRS Commissioner Chuck Rettig said last month.

The IRS also cautioned taxpayers not to depend on getting a refund by a specific day, especially when thinking about big purchases or paying bills.

References

  1. ^ release (www.irs.gov)
  2. ^ file (www.valuewalk.com)
  3. ^ Q3 2020 hedge fund letters, conferences and more (valuewalkpremium.com)
  4. ^ CARES Act (www.valuewalk.com)
  5. ^ IRS (www.valuewalk.com)
  6. ^ coronavirus pandemic (www.valuewalk.com)
  7. ^ charitable (www.valuewalk.com)
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