Unemployment Insurance is Taxable
Let’s talk about the unemployment insurance that goes with the income taxes in this 2020. All the unemployment compensation IS taxable on your federal income tax return. It IS NOT taxable on the California tax return. A form 1099-G will be sent out to you via mail in January. You can also get the 1099-G at the State Department of EDD. In the past years, my experience is that EDD usually provides the 1099-G around the middle of January in CA. I would check around then. I can not promise that will happen this year. They do have until Jan 31 to put it up on their website and mail them out by law.
You might ask “what might happens if I do report it on my taxes?” You most likely will get a letter from the IRS stating that you did not report your unemployment income this year, and therefore you own us XXX amount of dollars plus late and penalties fees. Yes, you can amend the return if you forgot that you received unemployment. I would suggest that you try not to do that. In my viewpoint it is better to make sure you get all the information on the return the first time in order that you don’t have an amended return also.
A word of caution; according the IRS website https://www.irs.gov/pub/irs-pdf/p5444.pdf it says all unemployment compensation is taxable which includes the federal portion of the $600 per week earlier in the year and $300.00 later in the year. When I was getting my unemployment, I requested that they withhold for federal income tax. The State of California only withheld the state portion of the unemployment but nothing for the federal portion of $600 or $300.00 per week. I personally made an estimate payment to cover the federal portion of my unemployment income.
We are providing a Protection plan which covers you for: 1) Id Theft Assistance, 2) Tax Debt Relief, 3) Interpretation and Guidance. It is a group of Experienced Tax Professionals who deal with these issues though out the year. More details are on the website. No addition cost.
We team up with Refund Advantage it is with Medabank and is an option to file the return now. Once the bank receives the refund from the IRS, then the tax prep fees are taken out and the rest of the refund goes to you. Direct deposit only option for you. Your cost for this Refund Advantage is $39.95 first distributor of funds and 12.00 for the second distributor of funds refund.
He will take credit cards and e-checks for the payment for the tax prep work at the end of process and when you are ready to e-file the return.
Falls Vital Accountant Services