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