A little late-ish Friday night ponderings about one of the most unique tax seasons I've experienced. So yeah, April 15 is 6 days away which usually means "tax deadline" right? Let me interject here that this is not a blanket statement applicable to 'your' tax situation - just some general ponderings. Please look at the specifics of your situation with a tax professional to make sure you stay on the right side of tax law.
Anyway... April 15 only means "deadline" for individual taxpayers if individuals owe estimated income tax payments. Which are really hard to calculate if the tax return isn't done. But that's just me.
In fact - we go beyond "you don't have to file by April 15" if you received Indiana unemployment benefits in 2020. Thanks to the March, 2020 federal legislation which made the first $10,200 in unemployment benefits exempt from federal tax and the fact that Indiana legislature is still in session, the Indiana Department of Revenue is requesting that taxpayers with 2020 unemployment benefits NOT file their tax returns until the legislature determines if they are going to follow federal law or not. Which could be the end of April. So, we wait. Fun.
And as an added bonus - if taxpayers were covered under a "Marketplace" insurance plan for 2020 and ordinarily would be repaying any credits received under their plan - the March legislation waived the credit repayment piece. Awesome, right? Well, mostly. The problem? Last I checked (earlier this week) the IRS has said they will provide guidance on how to prepare tax returns to reflect this. When, you ask? "Soon." When is "soon" exactly? Um. Well. About that.
So yeah - while many like me will be working long and hard to bring peace of mind to taxpayers, clients and friends as we approach April 15, it's fair to say that there are a few more loose ends than in an ordinary tax year. "Ordinary" - ha! That term seems so 2019. But on we go - and it's all about humbly being a blessing wherever we can. Hang in there all!!
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