2020 tax time is approaching, so make sure you’re aware of recent changes

RAPID CITY, S.D. — Tax time is here, and there are a few changes and things you need to know before filing your 2020 taxes.

Financial hardships have changed what people should expect in terms of what they owe and can expect back in return, but it may not necessarily be favorable for everyone.

“If they’ve gotten unemployment, they’re going to get a 1099G, and they need to wait for the 1099G before they file for their taxes,” said Bonnie Spain, Executive Director of Consumer Credit Counseling. “It’s important because unemployment is taxable. So, it will probably affect if they used to get a refund, it will affect what they get for a refund, or how much, or if they get one. So then, if somebody ends up paying in, then they may not want to file their taxes until closer to April 15th.”

Although those who used unemployment may owe in taxes, Spain stresses that the economic stimulus checks are still not taxable. She also says there are free tax preparation options for people who make under $72,000 a year, like Free File and AARP. As for last minute tax breaks, you have until December 31st to make any charitable donations for 2020. One option is the United Way of the Black Hills, which remains $300,000 short of their two million dollar fundraising campaign goal. Those dollars stay local, and can help you with your taxes.

“Part of the CARES ACT actually made it so that even if you don’t itemize your deductions, you can take up to a $300 charitable tax credit on your taxes for anything that you give in 2020,” said Jamie Toennies, Executive Director of United Way of the Black Hills. “And so that’s really exciting, because a lot of times people think that you can’t get that unless you itemize.”

There are also a few changes to taxes for military members this year. Federal taxes were deferred from September through the end of the year, and will pick up automatically in January through the rest of 2021, so members are encouraged to plan accordingly. Last year, tax deadlines were moved to July 15th, with extensions moved to October 15th. There is no word yet on similar plans for 2021.

Categories: Local News, South Dakota News