BC Tax & Accounting

Well just wrapped up our 2020 taxes with Mr. Bobby Carlton again. Amazing job once again. There’s no one else I would trust with my tax needs. Thank you again Super Bob for the wonderful stress free experience. See you again next year.

New to the tax return for 2020 is that taxpayers have the option of using this year or last years income amount to figure the Earned Income Credit and the Additional Child Tax Credit. This will be beneficial to taxpayers as the credits are dependent upon the dollar amount of earned income, as well as other qualifying items needed.

I have received several calls about the Economic Impact Payment better known as the "Stimulus", and how it would affect the 2020 Individual Income Tax Return. The monies received from both the 1st and 2nd issuances of payments are neither one taxable events. The payments have a direct bearing on the Recovery Rebate Credit and if you have received your full amount due to you no action will be needed because the IRS will already have this information. However, in the event that the full amount of the payment wasn't received by an individual the Recovery Rebate Credit (the balance of the impact payment amount) will be credited to your refund. None of the payments are taxable events.

As of December 29,2020, the IRS has Issued Number IR-2020-280 which states that $600 of the Economic Stimulus Money will start being Direct Deposited into accounts and could show up as early as tonight. Mailed checks will begin to be sent out today (December 30, 2020). For further information I can be reached at 573-399-2792

I have been asked many times if and how the economic stimulus payment will affect the 2020 Income Tax Return. As of right now the IRS plans to deem the payment a refund advance and it is not taxable but will reduce an individual tax refund by the amount received for the payment. However, the additional $600.00 individuals received for unemployment payments is taxable and will be included on the 1099-G issued by the department of revenue.