April News: Changes Impacting Your Taxes
Dear United Way friends,
Three big decisions over the past two weeks impact our Free Tax Prep program and you or someone you know.
First, the deadline to file taxes has been extended to May 17 to help taxpayers navigate the unusual circumstances related to the pandemic. This provides extra time to connect to our virtual options – including DIY, Free Tax Prep coaching and a Virtual Free Tax Prep service though the GetYourRefund.org platform.
The second decision was to allow up to $10,200 of unemployment income to be exempt from taxes. Many people don’t realize unemployment income is taxable and received an unpleasant surprise when filing their taxes.This late decision by Congress means those who already filed may be questioning if they need to make changes.
In most cases, the Internal Revenue Service will make the adjustments without an amended return, but each state is handling the changes differently. If you filed with a United Way Free Tax Prep site and you’re eligible for new credits, we will reach out by phone or mail to help you take action.
Finally, many people who received Premium Tax Credits (PTC) because they utilize the health insurance marketplace may receive a smaller tax credit for 2020. The credit may give you money back or, if you owe, you may not need to pay.
Confused? That’s why our Free Tax Prep program is here. In 2020, United Way helped 8,000 people avoid more than $2 million in tax filing fees, while collecting more than $12 million in refunds! Email us firstname.lastname@example.org or visit our FAQs to answer your questions.
We can help you virtually or at some in person sites. Reach out today!