Imagine seeing a tax form pop up in the mail that indicates that you need to claim an extra $5,000 or more in taxable income on your federal income tax return. And you never, ever saw a dime of that money?
But now, are you supposed to pay taxes on it? Whoa, what’s that about?
We’re looki
IRS warns of identity thieves stealing unemployment benefits accountingtoday.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from accountingtoday.com Daily Mail and Mail on Sunday newspapers.
Generally unemployment income is taxable at the federal level, so you have to report it on your tax return. However, there is a temporary $10,200 exclusion for many Americans.
Fraudsters will often use another person s name and address to file a claim, but include a bank account they have access to to collect the money. If you get Form 1099-G in the mail with your name on it reporting unemployment benefits you did not receive, then it s likely fraud.
You can quickly find the amount your state paid to your name in unemployment benefits in 2020 by looking at
Box 1 on Form 1099-G. In Box 4, you ll see the amount that was withheld for federal taxes, if any. These are the numbers you need to report on your tax return.
Fake unemployment claims trigger tax troubles for victims of identity theft yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.
How to get a bigger, quicker tax refund despite IRS delays in pandemic: Susan Tompor
Updated Jan 26, 2021;
Posted Jan 26, 2021
If you don’t believe you received the correct amount for a stimulus payment or if you didn’t receive anything yet, the 2020 tax return offers a second chance at some money for those who qualify. AP Photo/Matt RourkeMatt Rourke AP
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By Susan Tompor, Detroit Free Press
Get ready for one unruly tax season where many filers will face longer tax refund delays, the rules of the game for key credits have changed and many remain angry about stimulus checks and tax refunds from last year that never showed up.