IRS Tax Fighters: Tax Pros on Demand : On Labor Day, September 6, 20...

IRS Tax Fighters: Tax Pros on Demand : On Labor Day, September 6, 20...: Tax Pros on Demand : On Labor Day, September 6, 2021, 7.5 Million Ameri... : On Labor Day, 7.5 million Americans are projected to lose all o...

Your Tax Pro On Demand, 

R Clyde Olivieri, Jr.

On Labor Day, September 6, 2021, 7.5 Million Americans Are Projected To Lose All Of Their Unemployment Benefits.

• On Labor Day, 7.5 million Americans are projected to lose all of their unemployment benefits.

• With the pandemic still raging and many mothers with a child too young for a vaccine, they will have to stay home.

• There are millions of parents and mothers whose entire livelihood was disrupted by the pandemic. Between March and April 2020, 3.5 million mothers dropped out of active work, according to the Census Bureau, and 10 million mothers weren't working as of January, 2021, that's a third of all mothers who live with school-aged kids in the US.

• Young children are too too young to be vaccinated, and the Delta variant is a concern for kids returning to school and the parents that take care of them.

With Delta cases on the rise just as back-to-school season begins, return to normalcy looks far off. Experts told Insider that mothers may not return to work for months.

"Right now, a year later, the coronavirus is still out there and it's affecting kids.

Most out of work has been on a federal unemployment program, Pandemic Emergency Unemployment Compensation (PEUC), which extends how long workers can receive benefits. The PEUC program has most single parents "staying afloat," able to take care of  their bills and rent. The problem is it's expiring on September 6, 2021 without any permanent replacement.

There's no way that these kids are going to keep a mask on all day, nor social distance. They're children, it's going to be nearly impossible. So kids that have underlying medical conditions, it's dangerous for them to go and possibly be exposed to COVID-19. 

There are millions of parents and mothers whose entire livelihood was disrupted by the pandemic. Between March and April 2020, 3.5 million mothers dropped out of active work, according to the Census Bureau, and 10 million mothers weren't working as of January 2021, that's a third of all mothers who live with school-aged kids in the US.

With Delta cases on the rise just as back-to-school season begins, return to normalcy looks far off. Experts told Insider that mothers may not return to work for months.

Most who are out of work and on a federal unemployment program, Pandemic Emergency Unemployment Compensation (PEUC), which extends how long workers can receive benefits. 

It's a shame that they're going to cut these benefits, not knowing everyone's situations are very different, or some may be similar to mine. Most are not sure  sure what their going to be doing financially moving forward without these benefits from unemployment.

With the unemployment benefits, most were staying afloat. There may be other other resources out there, but, again, they can only do so much and it's not guaranteed that most are going to receive any of those benefits.

There's no way that these kids are going to keep a mask on all day, nor social distance. They're children, it's going to be nearly impossible. So kids that have underlying medical conditions, it's dangerous for them to go and possibly be exposed to COVID-19. 

Keep in mind that there is still not yet a vaccine for children under 12 years old. We're going to have really challenging - maybe impossible - times without those benefits. I would tell [the governor] to be knowledgeable of every person's unique situations on the reasoning on why people cannot return to work.

There is always a solution to every situation and we believe there is more than one, should you be in this situation, so call us seven days a weeks from 1000am until 1000pm, at 215.550.3636.

Your Tax Pro on Demand, 

Monica Marie Stuart

2020 Taxability Of Unemployment Compensation

With the latest batch of payments, the IRS has now issued more than 8.7 million unemployment compensation refunds totaling over $10 billion. In late May, the IRS started sending refunds to taxpayers who received jobless benefits in 2020 and paid taxes on that money before the American Rescue Plan went into effect. That law waived taxes on up to $10,200 in unemployment insurance benefits for individuals earning less than $150,000 a year.

The first batch of these supplemental refunds went to those with the least complicated returns (single taxpayers with no dependents), and batches are supposed to continue throughout the summer for more complicated returns. On July 13, the IRS said it sent out 4 million more payments via direct deposit and paper check, and another 1.5 million went out starting July 28. According to an igotmyrefund.com forum and another discussion on Twitter, some taxpayers who filed as head of household or as married with dependents started receiving their IRS money in July or getting updates on their transcript with dates in August. 

Here's a quick recap of what we know:

• The tax break is only for those who earned less than $150,000 in adjusted gross income and for unemployment insurance received during the pandemic in 2020. 
• The $10,200 is the amount of income exclusion for single filers, not the amount of the refund. The amount of the refund will vary per person depending on overall income, tax bracket and how much earnings came from unemployment benefits.
  
• Most taxpayers don't need to file an amended return to claim the exemption. But if you think you're now eligible for deductions or credits based on an adjustment, check the recent IRS release for the list of who should file an amended return. 
• If the IRS determines you are owed a refund on the unemployment tax break, it will automatically correct your return and send a refund without any additional action from your end. 
• Not everyone will receive a refund. The IRS can seize the refund to cover a past-due debt, such as unpaid federal or state taxes and child support. 
• Refunds started going out in May and will go out in batches through the summer as the agency evaluates tax returns. More complicated returns could take longer to process.
  
• The IRS is doing the recalculations in phases, starting with single filers who are eligible for the up-to-$10,200 tax break. It will then adjust returns for those taxpayers who are married and filing jointly, who are eligible for the up-to-$20,400 tax break.
• Refunds will go out as a direct deposit if you provided bank account information on your 2020 tax return. A direct deposit amount will likely show up as "IRS TREAS 310 TAX REF." Otherwise, the refund will be mailed as a paper check to whatever address the IRS has on hand.
• The IRS will send you a notice explaining the corrections within 30 days of when a correction is made.
• Some states, but not all, are adopting the unemployment exemption for 2020 state income tax returns. 
• Your Tax Pro on Demand, 
• Monica Marie Stuart