Delaware residents should be aware of several changes to their income taxes before filing this year.
If you filed for unemployment in 2020, haven’t received your stimulus payments, or have children, the state and federal governments have made adjustments to help ease the financial burden. It can add up to thousands of dollars in loan repayments, as well as some income exemptions.
Here are some of the changes you should be aware of.
Extended deadline for filing taxes
The personal income tax filing deadline has been extended to May 17. The original deadline was April 15.
The May 17 deadline will not be extended further, according to the finance ministry.
The extension does not apply to estimated quarterly tax payments, which are still due on April 30. It also does not apply to corporate or trustee income tax returns.
Unemployment benefits exempt from state taxes
Delaware workers who filed for unemployment in 2020 will not have to pay state taxes on these benefits, thanks to an exemption granted by lawmakers.
Residents who file a Delaware income tax return should enter the amount of unemployment benefits they received in 2020 on line 36.
Non-residents who file a Delaware income tax return should enter the amount of unemployment benefits they received in 2020 on line 25.
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How do I get my tax form 1099-G?
Form 1099-G shows how much money a person received in unemployment benefits.
In February, the Unemployment Division mailed out 1099-G tax forms to report benefits paid in 2020.
If you have not received your form or if your address has changed, contact the Unemployment Division at UICLAIMS@delaware.gov.
Electronic copies of the forms are not available this year, but the director of the Unemployment Division, Darryl Scott, said his office will try to create this option for the 2021 tax forms.
What if I earned more than $ 10,200 unemployed?
You are still required to pay federal taxes, but not state taxes.
The American Rescue Plan exempted the first $ 10,200 of benefits received in 2020 from taxes for households with incomes below $ 150,000.
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Do I have to file an amended return due to the $ 10,200 exclusion?
No. If you have already filed your 2020 federal income tax return, you do not need to file an amended return.
After President Joe Biden signed the US bailout, the IRS ad that it will automatically take the exclusion into account and issue refunds.
Never had your stimulus check?
If you were eligible for the first and second federal stimulus payments – $ 1,200 last year and $ 600 earlier this year – but never received them, you may be able to get that money now by applying for a credit. tax.
the IRS has instructions on how to claim the credit.
You must file a 2020 income tax return to get the credit, even if you don’t earn enough to normally file your taxes.
Do you have to pay taxes on business assistance loans?
Paycheck Protection Program loans that are canceled by the federal government are not taxable by the federal government or the state.
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Changes to Working Income Tax Credits for Children
New federal laws have changed the child tax credit, the dependent credit and the earned income tax credit.
The earned income credit is a refundable credit for low- and middle-income workers and couples, usually for people with children. But the American Rescue Plan expanded the EITC this year to include higher amounts of credit for people without children and with higher income thresholds.
Through a temporary amendment to the Taxpayer Certainty and Disaster Tax Relief Act of 2020, tax filers can also use their earned income in 2019 to calculate their EITC for 2020 if their earned income was higher in 2019 than ‘in 2020.
The American Rescue Plan also temporarily extended the child tax credit, raising it to $ 3,600 for children under 6 and to $ 3,000 for children 6 to 17 years old.
About 183,000 children will benefit from the expansion, according to the office of US Senator Tom Carper.
USA today contributed to this report.
Sarah Gamard covers government and politics for Delaware Online / The News Journal. Contact her at (302) 324-2281 or firstname.lastname@example.org. Follow her on Twitter @SarahGamard.