THANKS
THANKS FOR TUNING IN. WE'VE GOT A GREAT LINEUP FOR THE SHOW SO LET'S GET RIGHT TO
IT.
IT'S TAX SEASON AND IF YOU'RE
IN A RUSH TO GET THEM DONE BUT
HAPPENED TO MAKE A MISTAKE,
IT'LL BE OK.
THERE'S A NEW LOOKBACK RULE
THAT ALLOWS YOU TO AMEND
PREVIOUSLY FILED TAX RETURNS.
TAX EXPERT MIKE DEAVER JOINS US
WITH SEVERAL THINGS YOU NEED TO
KNOW ABOUT AMENDING TAX
RETURNS.
HI, MARK.
>> GOOD MORNING .
>> SO TELL ABOUT THIS NEW RULE
FOR AMENDING RETURNS.
WELL, AMENDING RETURNS HAS BEEN
AROUND AS LONG AS THE TAX
SYSTEM.
BUT WHAT'S NEW THIS YEAR IS THE
ABILITY FOR TAX PAYERS TO
CALCULATE CERTAIN 20-20 TAX
RETURN CREDITS LIKE THE EARNED
INCOME CREDIT OR CHILD TAX
CREDIT USING NOT THEIR 2020
INCOME WHICH MIGHT BE LOWER AND
GIVE LOWER CREDIT BUT THEY CAN
LOOK BACK AND USE LAST YEAR'S
TAXABLE INCOME LAST YEAR'S
EARNED INCOME ON THEIR 20 19
TAX RETURN TO CALCULATE THEIR
CREDITS SO THEY CAN LOOK BACK
AND USE THE BETTER OF THE TWO
NUMBERS AND CALCULATE THEIR
CREDIT.
AND IF THEY'VE ALREADY DONE
THEIR RETURN OR THEY DIDN'T SEE
YOUR PROGRAM AND THEY DON'T
KNOW ABOUT IT, THEY CAN AMEND
THEIR TAX RETURN AND STILL GET
THAT MONEY.
>> OH, INTERESTING.
WHAT ABOUT FOR FOLKS WHO
RECEIVED UNEMPLOYMENT INCOME?
IS THAT SOMETHING THAT'S
TAXABLE?
AND THEN WHAT IF YOU DIDN'T
REPORT IT ON YOUR 20-20 RETURN
YOUR UNEMPLOYMENT BENEFITS FOR
THOSE 60 MILLION PEOPLE?
>> ALWAYS TRICKY.
IT'S ALWAYS TAXABLE.
AND IF YOU GOT FEDERAL OR STATE
AND YOU LEFT SOME OFF.
BELIEVE ME THE IRS WILL FIND
YOU AND YOUR STATE WILL AS WELL
AND COME ASKING WITH ONE
OF THOSE TERRIBLE NOTICES.
BUT THIS YEAR JUST YESTERDAY
THE LAW CHANGED AGAIN AND MAYBE
NOT EVERYONE KNOWS ABOUT IT BUT
RETROACTIVE ALL THE WAY TO LAST
YEAR.
YOU CAN NOW EXCLUDE TEN
THOUSAND TWO HUNDRED DOLLARS
OF YOUR UNEMPLOYMENT BENEFITS.
SO WHERE I SAY IT'S ALREADY
USUALLY TAXABLE EXCEPT FOR
YESTERDAY'S TAX LAW CHANGE
WHICH WILL EXEMPT TEN THOUSAND
TWO HUNDRED PER PERSON THIS
YEAR.
SO IF YOU'VE ALREADY FILED YOU
PROBABLY NEED TO SEE A TAX PRO
AND SEE WHAT YOU NEED TO DO
ABOUT AMENDING OR FIXING THAT.
AND IF YOU HAVEN'T FILED AGAIN
MAKE SURE YOU DO IT RIGHT AND
DON'T PUT IT ALL ON THERE UNTIL
WE GET IRS GUIDANCE ON HOW TO
PUT IT ON THERE BUT DON'T PAY
TAX ON THE FIRST TEN THOUSAND
TWO HUNDRED TWENTY TWENTY THE
RETURNS YOU'RE DOING RIGHT NOW.
MARK, I NEED TO START TAKING
NOTES.
>> OK.
WHAT ABOUT THESE STIMULUS
CHECKS THAT A LOT OF PEOPLE DID
RECEIVE?
ARE THOSE TAXABLE?
AND THEN WHAT ABOUT FOR THOSE
THAT DIDN'T GET ALL OF THE
STIMULUS CHECKS?
AND THEN THERE'S THIS THIRD
STIMULUS CHECK.
IS THAT GOING TO BE TAXABLE
YET?
>> WELL, THE GOOD NEWS IS TO
START WITH STIMULUS PAYMENT
MONEYS ARE NEVER TAXABLE, HAVE
NOT BEEN ON ANY OF THE
PROGRAMS.
THE FIRST ONE THE SECOND THE
THIRD ONE.
HAVING SAID THAT, NOTHING STOPS
YOU FROM PUTTING THAT ON YOUR
TAX RETURN AND PAYING TAXES ON
IT.
AND UNFORTUNATELY WE ARE AWARE
A LOT OF PEOPLE MISUNDERSTAND
AND HAVE DONE THAT.
BUT YOU MIGHT NEED TO AMEND AND
PULL THAT OFF IF YOU DIDN'T GET
ALL YOUR MONEY BECAUSE YOU
MOVED HAD A BAD BANK ACCOUNT OR
CHANGE BANK ACCOUNTS OR HAD A
NEW DEPENDENT ADOPTED A CHILD
YOUR
YOUR FAMILY, YOU JUST DIDN'T GET ALL YOUR MONEY. YOU'LL NEED TO PUT THAT ON YOUR
TAX RETURN AND ASK FOR THOSE
EXTRA MONEYS AS WELL.
THAT WILL NOT HAPPEN.
AUTOMATIC.
SAME FOR THIS NEW STIMULUS
PAYMENT.
IT'S A 20 ONCE STIMULUS.
AND IF YOU DON'T GET IT IN THE
NEXT FEW WEEKS, YOU KNOW YOU'LL
NEED TO FOLLOW THE IRS.
AND IF YOU JUST DIDN'T GET IT
FOR REASONS THAT ARE
COMPLICATED OR YOU HAD A NEW
CHILD AND THE IRS DIDN'T KNOW
ABOUT IT, YOU'LL NEED TO FILE
THAT ON YOUR 20 21 TAX RETURN
AND GET ALL THAT MONEY.
SO GOOD NEWS NOT TAXABLE.
BAD NEWS IF YOU HAVEN'T GOTTEN
IT, IT'S PROBABLY NOT COME AT
LEAST ON THE FIRST TWO.
GOOD NEWS IS YOU CAN GO GET
THAT MONEY WITH YOUR TAX RETURN
OR AN AMENDED TAX RETURN.
MARK, THIS IS A LOT OF GREAT
INFORMATION AND YOU KNOW, WE
KNOW THAT THE LAST YEAR HAS
BEEN TOUGH FOR A
PEOPLE.
PEOPLE. >> MAYBE THEY NEED SOME EXTRA TIME.
DO YOU EXPECT TO SEE THE IRS
EXTEND THAT APRIL 15TH TAX
FILING DEADLINE THIS YEAR?
>> WELL, THE IRS IS MESSAGE
VERY CLEARLY THEY DO NOT PLAN
TO EXTEND THE DEADLINE.
>> THERE'S ALREADY A PROVISION
IN THE LAW THAT SAYS IF YOU
WANT EXTEND YOU FILE AN
EXTENSION IN THE FEDERAL FORM
28 48 OR IF YOU STATE THEY HAVE
ONE AS WELL.
SO THERE'S AUTOMATICALLY AN
EXTENSION OF TIME IN THE NEAR
THE LAW TODAY.
SO IRS DOES NOT PLAN TO EXTEND
THE DEADLINE THIS YEAR.
SO THEY'RE SAYING NOW BUT
THERE'S A LOT OF OTHER
POLITICAL PEOPLE THAT CAN WEIGH
IN ON THAT.
WHAT I TELL PEOPLE IS THERE'S
NO REASON TO WAIT FOR THAT
DELAY.
FILE YOUR TAX RETURN AS SOON AS
YOU CAN.
IF YOU DO A REFUND, YOU GET
YOUR MONEY FASTER.
PLUS YOU LOCK UP YOUR DATA SO
THOSE SCHEMERS WHO MIGHT HAVE
STOLEN YOUR DATA CAN'T FILE A
FAKE TAX RETURN.
AND IF YOU FIND YOURSELF
NEEDING A LITTLE MORE TIME, YOU
HAVE IT.
YOU'RE NOT UP AGAINST THE WALL
AT APRIL 15TH AT MIDNIGHT WITH
YOUR TAX PRO ASKING YOU ABOUT
YOUR HOME OFFICE OR SOME OTHER
THINGS THAT MIGHT HELP YOU GET
SOME MONEY.
IF YOU HAD THE DATA AND YOU'RE
NOT IN A PANIC SO FAR AS SOON
AS YOU CAN.
IT'S JUST A SMART PLAN.
THIS YEAR MORE THAN EVER.
WELL, AS WE'RE TALKING ABOUT
THESE IMMENSE AMENDMENTS, IT'S
OBVIOUSLY BECAUSE PEOPLE DO
MAKE MISTAKES.
>> CAN YOU TELL US WHAT ARE
SOME OF THOSE COMMON MISTAKES
THAT PEOPLE MAKE?
>> WELL, THERE'S A LOT
OF MISTAKES GOING TO THE
MISTAKE BUCKET.
THERE ARE ERRORS OF YOU KNOW,
YOU DIDN'T PUT SOME W-2 INCOME
ON THERE BECAUSE IT WAS SMALL
OR SHORT OR YOUR UNCLE BOB SAID
THAT'S NOT TAXABLE BECAUSE IT'S
UNDER A HUNDRED DOLLARS.
THERE'S REASONS THAT YOU MOVED
AND DIDN'T GET YOUR
INFORMATION.
BUT THE SINGLE BIGGEST MISTAKE
I SEE ARE MISTAKES MISSION YOU
DIDN'T KNOW ABOUT THE ITC LOOK
BACK.
YOU DIDN'T KNOW ABOUT THE
EXEMPTION OF THE UNEMPLOYMENT
BENEFITS AND YOU PUT SIMPLY TOO
MUCH INCOME ON YOUR TAX RETURN
AND YOUR REFUND WAS TOO SMALL.
SO THE ERROR OF OMISSION, THE
LEFT OFF BENEFIT WHICH WILL NOT
GET FIXED BY THE STATE, BY THE
IRS OR BY YOUR STATE, YOU KNOW
WE'LL JUST LEAVE YOU WITH LESS
MONEY.
THOSE ARE THE ONES THAT YOU
REALLY NEED TO FIND OUT FROM A
TAX PRO.
HOW IS IT TO BE HANDLED?
HOW DO YOU GET IT ON YOUR TAX
RETURN AND HOW DO I GET MY
MONEY THAT I DIDN'T GET WITH MY
FIRST TAX RETURN?
SO A LOT OF REASONS FOR
MISTAKES AS WE'RE ALL HUMAN.
BUT THOSE ERRORS OF OMISSION,
THOSE ARE THE WORST.
YOU KNOW, MARK, WHAT I WANT TO
KNOW IS PROGRAMS LIKE YOUR
TURBO TAX OR H.R. BLOCK FOR
PEOPLE THAT USE THOSE.
>> ARE THOSE GOING TO CATCH THE
MISTAKES?
ARE THEY GOING TO TELL YOU
ABOUT SOME THESE NEW RULES OR
THESE WAYS THAT YOU SHOULD LOOK
FOR SAVINGS?
WELL, THERE'S CERTAINLY NO
STANDARD GUIDELINES ON GOOD TAX
SOFTWARE.
ANYBODY WITH A GARAGE CAN
CREATE SOFTWARE.
SO WHAT I TELL THOSE
ADVENTUROUS SUPERHEROIC PEOPLE
WHO WANT TO DO IT THEMSELVES,
YOU NEED TO TRAIN YOURSELF UP
ON THE RULES BECAUSE AS GOOD AS
A SOFTWARE PACKAGES YOU ANSWER
THE QUESTION WRONG, YOU'RE JUST
GOING TO GET IT WRONG.
AND IF YOU GOT BAD TAX GUIDANCE
FROM UNCLE BOB, YOU'LL ANSWER
THE QUESTION WRONG.
SO A GOOD TAX REFUND REALLY
NEEDS THREE THINGS YOU NEED TO
BE ENGAGED AS A TAX PREPARER,
AS A TAXPAYER.
YOU KNOW, KEEP ALL YOUR
INFORMATION, KEEP YOUR ARVELO
LOW.
KEEP YOUR SHOE BOX, USE GOOD
SOFTWARE YOU OR YOUR PRO BUT
MOST IMPORTANTLY YOU'LL BE
ENGAGED WITH THE PERFORMANCE
OF YOUR TAXES.
IT'S YOUR LARGEST FINANCIAL
TRANSACTION.
SO IT MIGHT WORK FOR SOME BUT
NOT FOR ALL.
AND THESE DAYS WHEN WE HAD FOUR
TAX BILLS, EVEN TAX BILLS
RETROACTIVE A YEAR.
PROBABLY A GOOD IDEA TO GET
SOME HELP AND MAKE SURE YOU'VE
GOT ALL YOUR MONEY.
>> VERY GOOD, MARCY.
GREAT INSIGHT THIS MORNING AND
YOU KNOW IT IS TAX SEASON SO A
LOT OF PEOPLE WORKING ON THAT.
THANK YOU FOR COMING ON THE