The government has tried to find a way to help United States taxpayers with the creation of loans, which obviously, some will have to pay back. However, if they qualify, some will not need to return that money. Among the programs that the government granted to taxpayers are stimulus checks.
Taxpayers received $1,200 per person, with an additional $500 per qualifying child from this stimulus. The amount is determined based on the number of people in the household in 2019 or 2018.
Of course, we will have adjustments to our 2020 tax return due to the stimulus checks. The adjustment is determined by a letter that was attached to the check. Sure, many of us discarded that letter, either because we didn`t think that letter might be relevant to our taxes or simply because we were more concerned with using the money.
Whatever the reason may be, we don`t have that letter, taxpayers who used direct deposit should be able to track the exact amount received. For those who received checks and do not remember the exact amount received, they may have trouble preparing their taxes.
Now that a second round of checks has begun and the bank accounts are receiving these funds, it would be advisable to be careful and save all the information related to these transactions. Remember, the two stimulus checks were not loans and do not need to be repaid to the government, unlike business owners who obtained loans as part of the Paycheck Protection Program that have not been or will not be forgiven.
Your tax return will surely have adjustments on stimuli, but will mostly remain the same. The recommendations to gather all your income documents (Forms 1099-Misc, Forms W2), expenses of your transportation business (diesel, repairs, plates, insurance, etc.), and if you added new equipment to your business. It would make it easier if you provide the purchase information of this equipment (brand of equipment, year, total cost and date of acquisition) for a more helpful and detailed process.
The fact of gathering all our documents for the preparation of taxes is very important, since we would be claiming the credits to what the law allows us and thus, we would avoid last minute complications. The offices of Jagg Tax Solution, Inc., are here to advise and assist any trucker (Corporation, LLC or independent owner) in their tax needs.