KOB 4’s Spencer Schacht sat down with local tax experts to sort through some of the complex aspects of filing – so you know exactly what you need.
What about W2’s to 1099’s and those child tax credits you’ve received since last year? There are tons of forms you need to put together before you can pay your taxes but what does each form mean and where do you get them?
“In a typical business situation, you have an employer withholding money on your behalf and paying it into the IRS for you. 1099 is a way to receive income with no one withholding money on your behalf so you are liable for Brandy Romero, tax expert said.
So if you claim unemployment this year, you should get a 1099-G in the mail from the Department of Workforce Solutions by January 31st. But to get that form you should make sure the address is Your mailing is correct on Workforce Solutions Website.
Those who should keep an eye on 1099-G are those who received unemployment insurance — pandemic unemployment benefits — federal or state extended benefits — or lost wages
“It depends on how much you earn and if you had to claim a percentage of unemployment that you did, it would be a lot of hassle to file but your tax preparer will know how to do it, ‘ said Romero.
Now if you have a child under the age of 17, you most likely have to get a monthly child tax credit. Along with that check, you should also receive a monthly 6419 letter stating the exact amount you have been issued.
“I cannot stress enough how important it is to keep these letters and provide them to your tax professional during the tax return process. These letters are vital for prompt processing of your tax return. friends,” Lisa Padilla told Rio Rancho Liberty Tax.
So, remember to hold onto these letters when you’re ready–
“You would just include it as part of your income on your taxes so the IRS can treat it like you received it,” says Padilla.
Do you still have questions? The IRS website outlines the entire process for both filing 1099 and child tax credits.
https://www.kob.com/albuquerque-news/local-tax-expert-talks-tax-season-tips/6353001/?cat=500 Local tax experts talk tax season tips