Important Tax Breaks You Should Consider for 2020

Most people would agree that 2020 was a very strange year from what they’re used to. Luckily, some of the differences that occurred in the past year allow for some new kinds of breaks for taxpayers. Depending on your particular situation, there could be some extra benefits coming your way this tax season. Along with allowing taxes to be filed a little bit later this year, the government is providing some relief to people experiencing certain circumstances. If some situations apply to you, it might be a wise choice to spend a little extra time on your 2020 taxes. You might end up saving some extra money.

If You Went to College

If you were a college student in the past year, you may qualify for some extra tax write-offs. Certain tax credits are available to people paying for a college education, including dependents. If you were paying for university tuition for your child, your spouse, or yourself, you can qualify for a break regarding the cost of attending school. This particularly applies to people who are enrolled in a college with a four-year degree program. The qualifying student must also be taking classes at a pace that’s at least half of full-time. Consult your tax professional to learn more about how to apply for this type of benefit.

If You Received Unemployment

Usually, unemployment insurance is considered a type of taxable income. Many people relied on this type of benefit in the past year. If you received unemployment benefits for the 2020 tax year, then you could qualify for some new types of tax-write offs. Single people and married couples who file taxes can be eligible for a special unemployment exception if their incomes are under a certain amount.

If You Worked a Freelance Job

If you were self-employed last year, then you may also be eligible for some new tax write-offs. It’s a good idea to pay special attention to all the costs you incurred as a result of doing business. Since people had to rely a lot on video meetings, the government even allows deductions for the costs of these types of office supplies. Freelancers can deduct costs for lighting to do video meetings, software needed to conduct business, and expenses related to hosting a website.

Many other situations also allow for 2020 tax relief. Some extra research may go a long way on your taxes this time around.