Kimberly Palmer, of Nerdwallet, said tax season is more overwhelming than usual for a lot of people.
According to Palmer, here are some of this year s big issues for taxpayers:
Stimulus checks. Are they taxable income?
The answer is no. Those checks will not impact your taxes.
What about unemployment benefits? In general with unemployment benefits, you are paying taxes. You certainly are paying federal taxes and the rules by state vary but good news here in California, we don t pay state taxes on those benefits.
Many unemployed workers picked up gig work this year.
If you re one of them, heads up that you ll need to file a Schedule C. It can make filing taxes a little more complicated.