Financial expert offers advice on navigating unique tax season during pandemic

People urged to file taxes early this year due to health crisis

The year 2020 was a difficult year and financially devastating for many people. Filing taxes early and making sure everything is done correctly is key.

DETROIT – As with so many things during the pandemic filing your taxes this year is very different.

There is a whole new list of challenges for many who may have collected unemployment or suffered job loss.

What is key is getting your return in early. This year here is what you need to know if you collected unemployment or a stimulus check.

“I just think it is the craziest year because there are so many moving parts,” said financial expert, Tom Hakim.

Due to everything happening with stimulus checks and COVID Hakim noted that people will want to file earlier this year.

“My gut tells me that there is going to be a lot of delays,” said Hakim.

Working to get your return in early will help you get your money back quicker. If you get a return it will also allow the IRS to have the most updated personal information and your banking information should another stimulus check get released soon.

“If you didn’t get your check that you had coming or receive less than you thought you should, the government will make that up from my understanding and your refund,” said Hakim.

For those of you who have collected unemployment or received stimulus checks, you need to know how this could affect your taxes.

“You think about your income. You think about your unemployment. If you worked part of the year, if you did on the side you have a 1099 income. You have to basically assemble everything that you have received income on and then sort out what you’re going to have to pay taxes on and what you’re not,” Hakim said.

MORE ON TAX SEASON


About the Authors:

Natasha Dado is a digital content producer for ClickOnDetroit.

Hank Winchester is Local 4's Consumer Investigative Reporter and the head of WDIV's "Help Me Hank" Consumer Unit. He works to solve consumer complaints, reveal important recalls and track down thieves who have ripped off metro Detroiters.