Support Local this Season!
Western Wake Crisis Ministry has recently launched their Holidays & Beyond Food Drive.
Please donate items or make a financial contribution to help others in need.
Donations are being taken Now thru December 18, 2020.
Full details here: https://wwcm.org/wp-content/uploads/2020/10/Holidays-Beyond-Flyer-2020.pdf
Thank you for supporting local!
Here’s who qualifies for the
employee business expense deduction
Employee business expenses can be deducted as an adjustment to income only for specific employment categories and eligible educators.
Taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions, unless they are a qualified employee or an eligible educator. They must complete Form 2106, Employee Business Expenses to take the deduction.
If someone falls into one of these employment categories, they are considered a qualified employee:
- Armed Forces reservists
- Qualified performing artists
- Fee-basis state or local government officials
- Employees with impairment-related work expenses
No other type of employee is eligible to claim a deduction for unreimbursed employee expenses.
Here’s what makes something a qualified expense:
- Paid or billed during the tax year
- For carrying on a trade or business of being an employee, and
- Ordinary and necessary
Taxpayers should know there are nondeductible expenses.
There is a full list of nondeductible expenses in Publication 529, Miscellaneous Deductions.
IRS designates November 10
National EIP Registration Day
The IRS has designated Tuesday, November 10, National EIP Registration Day. This is part of the agency’s final push to encourage everyone who doesn’t normally file a tax return to register to receive an Economic Impact Payment.
This special event will feature support from IRS partner groups including those that work with low-income and underserved communities. These groups will help spread the word about the new November 21 deadline and, in some cases, provide special support for people who still need to register for the payments.
The IRS has already sent nearly 9 million letters to people who may be eligible for the $1,200 Economic Impact Payments but don’t normally file a tax return. The letters along with the special November 10 event urge people to use the Non-Filers: Enter Info Here tool, available only on IRS.gov.
While most eligible U.S. taxpayers have automatically received their Economic Impact Payment, others who don’t have a filing obligation should use the Non-Filers tool to register with the IRS to get their money. Typically, this includes people who receive little or no income.
Who should use the Non-Filers tool
The tool is designed for people with incomes below $24,400 for married couples, and $12,200 for singles who could not be claimed as a dependent by someone else. This includes couples and individuals who are experiencing homelessness.
Anyone using the Non-Filers tool can speed up the arrival of their payment by choosing to receive it by direct deposit. Those not choosing this option will get a check.
People can track the status of their payment using the Get My Payment tool beginning two weeks after they register.
The IRS urges everyone to share this information to help the agency reach as many people before the November 21 deadline.
Tax Tip! Here’s what taxpayers need to know about filing an amended tax return
Here are some common reasons people may need to file an amended return:
- Entering income incorrectly
- Not claiming credits for which they’re eligible
- Claiming deductions incorrectly
The IRS may correct math or clerical errors on a return and may accept returns without certain required forms or schedules. In these instances, there’s no need for taxpayers to amend the return.
Taxpayers who do need to amend their tax return might have questions about how to do so. Here are some things they should know:
- Taxpayers may now use tax software to file an electronic Form 1040-X. At this time, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically if the original 2019 tax return was also filed electronically.
- Taxpayers who cannot or chose not to file their 1040-X electronically should complete a paper Form 1040-X.
- If filing a paper 1040-X, mail it to the IRS address listed in the form’s instructions under Where to File. Taxpayers filing Form 1040-X in response to an IRS notice should mail it to the IRS address indicated on the notice.
- Attach copies of any forms or schedules affected by the change.
- File a separate Form 1040-X for each tax year. When mailing amended returns to the IRS, place each tax year in a separate envelope and enter the year of the original return being amended at the top of Form 1040-X.
- Wait – if expecting a refund – for the original tax return to be processed before filing an amended return.
- Pay additional tax owed as soon as possible to limit interest and penalty charges.
- Taxpayers should file Form 1040-X to claim a refund within three years from the date they timely filed their original tax return or within two years from the date they pay the tax, whichever is later.
- Track the status of an amended return three weeks after mailing using the Where’s My Amended Return? tool.
(Photo by HENCE THE BOOM on Unsplash)
There are 10 weeks left in 2020 and it’s never too late to get on track!
Contact AABS Inc. today to get your books in order! Call us at 919-303-3345