Your COVID-Related Tax Questions: Answered

Your COVID-Related Tax Questions:, Answered.
With tax season upon us, many are wondering how their new
work-from-home status might affect their 2020 tax returns. .
Here are six of the most-asked COVID-related
tax questions answered by tax professionals.
1. Do I qualify for the
home office deduction?.
You do qualify if you’re self-employed or an
independent contractor. If you get a W-2 tax
form from your employer, you don’t qualify.
2. Are there any new deductions
I could be eligible for?.
If you qualified for but didn’t receive either of the stimulus checks
in 2020, you’re eligible for the Recovery Rebate Credit. .
3. If I work from home in one state
but my employer is in another, which state
income taxes do I pay?.
You typically only pay income taxes in the state you reside in.
If you performed work in both states before moving to a
remote setup, you need to pay income taxes in both. .
4. I temporarily moved
to a different state in
2020. How does this
impact my taxes?.
Even if your move was only temporary due to COVID-19,
you may still owe taxes in that state too. The longer your stay,
the more likely you have a tax obligation. .
5. Do I need to pay taxes if I
worked part-time and received
unemployment benefits or
compensation from a
work-share program? .
Yes, because compensation received from a work-share program
or Pandemic Unemployment Assistance is taxable income. .
6. Do I need to pay taxes on the stimulus
check I received in 2020? .
The stimulus check is not taxable income and
won’t factor into your refund or any taxes you owe.
You do still need to record it on your tax return.