Matthew Johnson, CPA

07/16/2021

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You may have to pay the IRS if you're getting child tax credit checks that you don't qualify for. Opting out is the best way to avoid repayment.

03/31/2021

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The Internal Revenue Service will begin refunding money to people in May who already filed their returns without claiming the new tax break on unemployment benefits, the agency said Wednesday.The federal tax break went into effect following the recent changes made by the American Rescue Plan. The la...

03/23/2021

From the Illinois Department of Revenue:

The federally enacted American Rescue Plan Act of 2021 includes a retroactive provision making the first $10,200 per taxpayer of 2020 unemployment benefits nontaxable for individuals with an Adjusted Gross Income of less than $150,000.

If you have not filed – You may file your Illinois return once you have filed your federal return. Taxpayers will not be required to add back any of the nontaxed unemployment benefits in computing their Illinois base income.

If you have filed – IDOR is looking at ways to systematically adjust returns that have already been filed. We will issue guidance for taxpayers and tax professionals on the process for obtaining a refund if nontaxed unemployment benefits were included on a previously filed 2020 Illinois tax return. Therefore, taxpayers who received unemployment benefits last year and have already filed their 2020 Illinois tax return should not file an amended return at this time.

https://www2.illinois.gov/rev/Pages/American-Rescue-Plan-Act-of-2021---Nontaxable-Unemployment-Benefits.aspx

The Internal Revenue Service has provided guidance on how to report unemployment benefits and take advantage of the income exclusion on Schedule 1 of the Form 1040. Taxpayers should follow those instructions in computing the federal Adjusted Gross Income that carries over to Line 1 of the Form IL-1040.

View up to date information on Illinois’ Covid-19 vaccine plan and vaccination eligibility from the State of Illinois Coronavirus Response Site

03/22/2021

Update: the state of Illinois has extended the tax filing deadline to match the new federal due date of May 17th. However, Illinois has not provided any guidance for those that may have received unemployment income on what if any deduction will be allowed at the state level

03/18/2021

The IRS announced today that the filing deadline for federal income tax returns has been postponed to May 17. This means any payment owed at the federal level does not have to be paid until the 17th however at this point all state returns are still due on April 15, and in general, you need a completed Federal return to complete your state returns.

we will see if any states follow suit and postponed her dates like they did last year.

If you are required to file estimated tax payments, the first estimated payment is still due on April 15th

IR-2021-59, March 17, 2021 — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.

03/13/2021

With the passage of the American Rescue Act this week, in addition to more stimulus payments it was announced that unemployment benefits up to $10,800 will be excluded from federal income tax. If you’ve already filed with me and had unemployment income, don’t worry we will amend your return to remove this income and get a refund on taxes paid. If I haven’t filed your return yet just sit tight as I hope to know more in the next few days/week.

03/07/2021

Even if you don’t itemize deductions, for 2020 (and 2021) you can deduct up to $300 in charitable cash contributions made to eligible charities.

02/28/2021

I’ve gotten some questions from clients asking about the economic stimulus payments that were paid out in 2020 in the beginning of 2021 these items are not taxable income, however if you happen to earn more or less income, it could affect what you are eligible to keep. If you earned less in 2020 vs 2019, you could be eligible to receive more if you didn’t get any or the full amount.

02/26/2021

Did you know that if you had a child in 2020, you could be eligible for up to $1,100 in economic recovery payments?

02/15/2021

It is here! My new website:

www.mattjohnsonthecpa.com

This is just another way for people to engage and get to know more about the services that I provide

Tax preparation, CPA, Lombard, Wheaton, Glen Ellyn, Naperville