Idaho and the feds provided Covid-19 payments in 2020. Will you owe taxes on them?
Idaho and the feds provided Covid-19 payments in 2020. Will you owe taxes on them?
Did you receive COVID-19 unemployment payments?
Maybe a Paycheck Protection Program loan for your business?
How about an Idaho return-to-work bonus?
IN OUR REBOUNDIDAHO SERIES..THE START OF A NEWYEAR... MEANS IT'SONCE AGAIN TIME TOSTART PREPARINGTAXES.THE IDAHO TAXCOMMISSION SAYSIDAHOANS HAVEBEEN ASKING HOWCOVID-19ASSISTANCE WILL BETAXED.AND THERE'S GOODNEWS FOR BUSINESSOWNERS...IF YOUGOT P-P-P FUNDINGDURING THEPANDEMIC...NOTMUCH IS CHANGINGFOR YOU."THOSE LOANSAREN'T TAXABLE,AND IF THEY'REFORGIVEN THEY'RESTILL NOT TAXABLE.YOU CAN STILLDEDUCT THEEXPENSES YOU PAIDWITH THOSE LOANPROCEEDS."SOMETHING TO KEEPIN MIND THOUGH... IFYOU GOT AREBOUND GRANT...THAT MONEY ISTAXABLE.SO YOU'LL HAVE TOMAKE SURE YOUINCLUDE IT ON YOURTAXES.IF YOU'RE ANIDAHOAN WHORECEIVEDUNEMPLOYMENTBENEFITS FROM THECOVID-19 PANDEMIC..YOU MIGHT BE IN FORA BIG SURPRISEWHEN FILING YOURTAXES THIS YEAR.STIMILUS CHECKSAND ECONOMICIMPACT PAYMENTSARE NOT TAXABLEINCOME, BUT ITS ADIFFERENT STORYFORUNEMPLOYMENT.THOSE CHECKS ARETAXED, ANDDEPENDING ON HOWMUCH YOURECEIVED, YOUCOULD HAVE TO PAYA HEFTY AMOUNT."YOURUNEMPLOYMENTTHAT YOU GOT,INCLUDING IF YOUGOT A RETURN TOWORK BONUS ANDTHE ADDITIONALUNEMPLOYMENT YOUMIGHT HAVE GOTTHROUGH THEFEDERALGOVERNMENT THATEXTENDED FOR APERIOD OF TIME,THOSE ARE TAXABLEBOTH BY THEFEDERALGOVERNMENT ANDBY IDAHO."SO MAKE SURE TOCLAIM THEUNEMPLOYMENT ONYOUR FEDERAL ANDSTATE RETURN..AND IF YOU PLAN ONFLING FOR ANEXTENSION - KNOWTHAT IT'S NOT EXTRATIME TO PAY - BUTONLY TO FILEBOTH THE FEDERALI-R-S AND STATE TAXCOMMISSION WILLSTART PROCESSINGRETURNS ON FRIDAY,FEBRUARY 12TH.REFUNDS WILLSTART GOING OUTAFTER THAT DATE.HEAD TO IDAHONEWS 6 DOT COMFOR GUIDANCE ONTHE FORMS YOU
