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FAQs

What tax preparation documents do I need to provide to InstaTax Live?

Click here to see InstaTax Live’s tax preparation document checklist! Also, please provide any recent tax notices received and/or questions you have.

When is my tax return due?

The deadline for filing individual and corporate tax returns is April 15th. Partnerships and S Corp tax returns are due on March 15th.

Filing extensions are due on October 15th; however, if you owe any taxes, you must pay by the above due dates to avoid late penalties.

If I am owed a refund, when will I receive it?

Federal tax refunds are generally deposited within 21 days after submission; however, it could be as soon as 7-10 days after filing.

State tax refunds generally take a little longer and laws vary per state.

2020 Tax Laws:

Below is a list of the common tax provisions included in the CARES Act intended to provide immediate relief to taxpayers. For more information or questions about other tax laws, please feel free to contact me.

  • Unemployment Compensation Exclusion: For those who received unemployment income in 2020, please note the first $10,200 will not be subject to federal nor state income taxes! If you already filed your 2020 tax return, the IRS has advised not to submit an amended return at this time as they will be issuing the additional refunds automatically.

  • Recovery Rebate Credit: If you did not receive your EIP (stimulus payments), you will be able to claim the missing amount(s) as a credit on your tax return. This credit will either increase your tax refund or reduce your tax due.

  • Special $300 Tax Deduction: If you made cash donations (including checks, credit card or debit card) to charity, you can claim a deduction up to $300 even if you do not itemize! Please note, this does not include donated items, securities or other property.

  • Earned Income Credit (EIC): The EIC applies to individuals who work and have earned income under a certain amount (maximum of $56,844; other requirements apply). For 2020, you can elect to use your 2019 earned income to figure your 2020 credit if your 2019 earned income is more than your 2020 earned income.

  • Retirement Plans: Funds withdrawn from your retirement plan (e.g., 401(k)), of up to $100,000, will be exempt from the 10% early withdrawal penalty. This 10% penalty normally applies to withdrawals made prior to age 59 ½. Please note, plans are not required to offer such withdrawals and may require the cooperation of the employer. Additionally, loan limits increased from $50,000 to $100,000 which may also require the employer’s cooperation.

  • Small Business Act (Paycheck Protection Program): Small business loans that originated during the period February 15, 2020 – June 30, 2020, but not repaid will not be included in gross income for federal income tax purposes as long as the loan proceeds were used for payroll, qualified mortgage, rent, or utility expenses.