Tax season has begun and E file has started.
Tax season has begun and E file has started. This year's points are unemployment insurance (FORM1099-G) and STIMULUS CHECK whether you received $1,200 per person. If you have not received THE STIMULUS CHECK, you can re-apply by filing a tax return in 2020. So it is important to claim exactly how much money you received last year. Most people had received a letter from the IRS about the amount, so it would be nice to check it or check it in the bank statement.
There are a lot of people who got form1099-G Hawaii unemployment insurance this year, but most people do not have any withholding tax from it, so there is a pattern that they have to pay taxes upon filing. For individuals, there are few things that can use deductions very much, but we recommend that you put a TRADITION IRA (personal pension) up to $6,000 for those under 50 in 2020 and $7,000 for those over 50. You can think of it as long-term savings, but if you draw it before you are about 60 years old, there will be a 10% penalty, so it is recommended for those who have a little room for savings.
Because it is such a time now, it is possible to reduce taxes using this way if there is room for living expenses of at least 6 months separately. However, keep in mind that even if you save taxes by putting TRADITION IRA in 2020 return, it will be your income in the year you draw it.
I will explain more about IRA in detail on another occasion, but this time, if you have received FORM 1099-G and have not been drawn tax from it, you may have to pay taxes at the time of filing.