Transcript for Smart money tips ahead of Tax Day
We move to our money start series. Tax day is Monday, just three days away, in this unusual pandemic year there are new questions about what you owe and what you can deduct. Rebecca Jarvis joins us with the answers. Good morning, Rebecca. Reporter: Hey, George. Good morning to you. And one of the questions on a lot of people's mind is whether or not they can deduct for that at home work from home workspace that they created for their zoom calls, well, reality here is only if you were self-employed in 2020 are you able to deduct for that space. It had to be used regularly and exclusively for your work purposes as a self-employed employee but here's something to keep in mind. It doesn't have to be a separate room in your home as long as it was a portion of your home that you regularly and exclusively used for work, you can deduct it, George. How about a lot of people lost their jobs, collected unemployment insurance. What taxes are due for that income? Traditionally, you would pay taxes on your unemployment benefits if you collected unemployment in 2020, you should have received earlier this year a 1099g form. That is the form that looks at all your benefits at the federal level that you collected in 2020. This year because of the stimulus package passed earlier this year, you do not have to pay taxes on up to $10,200 worth of those unemployment benefits at the federal level if you make less than $150,000, states have their own rules so you want to check directly with your state tax office, George. What if someone still doesn't have a job and don't have the cash to pay their taxes right now? And there will be people in that situation, you want to talk directly to the irs right now. Go to them, let them know your situation. They can help you set up a payment plan. The fastest way to get that refund is filing electronically and if you make less than $72,000 a year, you can do that for free at irs.gov. That has a lot of answers to these questions as well. You do have to file even if you can't pay, file because that will help you not have to pay penalties in the future, George. That is the most important first step just three days away, Rebecca Jarvis, thanks very much.
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