Forms, documents you may need for 2020 taxes

This year, Americans will be filing their taxes in the summer due to the extended tax deadline of July 15.

The deadline was pushed back when shelter-in-place orders caused by the coronavirus made it difficult, if not impossible, to file taxes in April. Those seeking a further extension to October 15 must also file for it by July 15.

As happens every year, there are some changes in the tax laws East County residents should be aware of. One of these includes laws governing who can receive a 1099.

“Mostly, this will affect contractors, landscapers, that kind of thing,” said Carmen Hester, partner and enrolled agent at Hester Taxes and Bookkeeping. “This will force people to become accountable in industries where day labor was heavy because it’s forcing people to pay their taxes. It’s forcing people and businesses to become accountable, obey the laws and hire people who are legal to work, and prevents companies from having people on the books who don’t exist.”

Some people may wonder if any COVID-19 write offs are available, but Hester said if any are created, they will not be available until 2021 for the 2020 tax year filing. One thing Hester warned is that unemployment monies received this year will be considered taxable income.

“I do expect a lot of people to be surprised when they go to file their taxes from the 2020 tax year,” she said. “Traditionally we see that people who get unemployment do not necessarily have taxes taken out and do not necessarily understand the fact that it is a taxable income, and so I’m very fearful of people being surprised next year when they file their taxes and realize that extra $100 a week is taxable income they will be paying taxes on come tax time.”

Hester Taxes and Bookkeeping is located at 4700 Main Street, Suite A, in Oakley. For more information, call 925-679-8256 or visit http://www.hestertaxes.com/.

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