TRI-CITIES, WA - You have ten days left to file your 2020 taxes if you have not already.
There are several reasons you should apply for your taxes now instead of waiting. Chris Porter, a certified public accountant with PorterKinney, said you should act now.
There are several funds that can help business owners when it comes to taxes. If you are a business owner, you may already know about PPE loans which are forgivable loans from the government.
Chris said there is also Employee Retention Credit which is a credit for businesses in one of two situations "either one they had a significant decline in their gross receipts, which for this year is basically 20 percent or more, decline in gross or they are under a full or partial government restriction on their business," he said.
For business owners that fall under one of those two categories, Chris recommends to speak to your CPA about trying to get an Employee Retention Credit.
A common question about 2020 taxes has to do with the stimulus checks. He said some people may have not received the first two stimulus checks, because their income was too high or for unexplained reasons.
"Even if you don't normally file, even if you are not normally required to file a tax return. You need to file a 2020 tax return and indicate on that return, that you did not receive one or both of the stimulus payments," he said.
If the tax return shows you are owed those checks, you will get them back as past of your return in a Recovery Rebate Credit. People are also referring to the help Plus Up stimulus payments as the third stimulus payment, which is the most recent one.
Chris said that is not a part of the Recovery Rebate Credit on the 2020 tax return.
"But if the IRS notices on your 2020 tax return that you claim another dependent or had a baby born, or your income dropped below where it was before, and accordingly you are owed more stimulus payment for that third round of stimulus checks, then those checks will be sent automatically," he said.
If you have questions about your 2020 tax return, you are encouraged to reach out to your CPA.