Coronavirus (COVID-19) and Taxes: August-December 2020

And 2020 is still the year of COVID-19. In fact, the deadly coronavirus has been so persistent and there have been so many pandemic-related tax matters, that the original special Coronavirus (COVID-19) and Taxes page was overwhelmed and overflowing.

So I renamed it Coronavirus (COVID-19) and Taxes: March-July 2020 and created this page to finish out the year.

Then 2021 arrived and COVID-19 was still here. Actually, it picked up steam after people decided they were going to escape their self-isolation pods and visit family and friends over the December holidays. So now there's a third special coronavirus tax page named marking COVID/tax posts from for January 2021 until … who knows? Here's hoping we don't need any 2022 versions!

A couple of things stay the same on all three pages. First, the items are listed with the most recent post first.

Secondly, this page, like its COVID counterparts, starts off with COVID-19 posts from Don't Mess With Taxes because, well, it's my blog! Then the other sections with coronavirus links from official government websites, professional associations, law and accounting firms, and tax policy think tanks follow.

So enough with the housekeeping. Here's the second collection of coronavirus tax+ matters.

8 Q&As about the $600 COVID-19 payments that already are on their way (Wednesday, Dec. 30, 2020)
Full 11 weeks of unemployment assistance will be paid even after COVID relief delay led to lapse (Sunday, Dec. 27, 2020)
Special COVID pandemic tax benefits for charitable help (Monday, Dec. 21, 2020)
IRS goal: Issue most 2019 tax refunds by Dec. 31, 2020 (Wednesday, Dec. 16, 2020)
Tax reform is a global concern in wake of COVID-19's costs (Sunday, Dec. 6, 2020)
IRS and FBI warn about business cyber scams that target COVID teleworkers (Friday, Dec. 4, 2020)
COVID relief 2.0 could offer some donors a bigger charitable tax deduction (Thursday, Dec. 3, 2020)
Use Form 8915-E to report, repay COVID-related retirement account distributions (Tuesday, Nov. 24, 2020)
IRS won't provide blanket tax relief for penalties assessed during COVID-19 (Saturday, Nov. 21, 2020)
Didn't get COVID-19 stimulus money? Nov. 21 is the last day to register for it (Wednesday, Nov. 18, 2020)
Watch out for continuing COVID-19 tax (and more) scams (Sunday, Nov. 15, 2020)
IRS offers tax help to those facing COVID money troubles (Sunday, Nov. 8, 2020)
Deductibility of PPP loan expenses: Tax issues remain at federal and state levels (Friday, Nov. 6, 2020)
IRS is resuming issuance of tax balance-due notices (Sunday, Oct. 25, 2020)
In the wake of disasters & COVID-19, will the IRS be ready for the 2021 tax season? (Saturday, Oct. 24, 2020)
Nov. 10 is national COVID economic relief registration day (Friday, Oct. 23, 2020)
10 ways FSA/HSA funds can help you cope with COVID-19 (Wednesday, Sept. 30, 2020)
COVID-19 relief payment deadlines are just days away (Monday, Sept. 28, 2020)
COVID EIPs await non-filers nationwide, especially in some NY ZIP Codes (Sunday, Sept. 27, 2020)
COVID tax credits highlighted by IRS during National Small Business Week (Thursday, Sept. 24, 2020)
No 1099-C for forgiven PPP loans, but this tax form still issued in other taxable canceled debt cases (Wednesday, Sept. 23, 2020)
State revenue loss due to COVID-19 not as bad as feared (Sunday, Sept. 20, 2020)
1 million+ Californians top list of missed COVID payments (Thursday, Sept. 17, 2020)
Senators push for end of forced deferral of federal employee payroll tax (Wednesday, Sept. 9, 2020)
IRS special letter going to non-filers with info on how to get COVID tax relief payments by year's end (Tuesday, Sept. 8, 2020)
Federal workers are forced payroll tax deferral guinea pigs (Thursday, Sept. 3, 2020)
Treasury clears up Trump's payroll tax order. Just kidding! (Saturday, Aug. 29, 2020)
IRS approves e-signatures for 10 tax forms, temporarily (Friday, Aug. 28, 2020)
Tax injured spouses to get catch-up COVID-19 payments (Wednesday, Aug. 26, 2020)
IRS waives some bad check charges (Monday, Aug. 24, 2020)
COVID-created tax refund interest payments going to nearly 14 million filers (Sunday, Aug. 23, 2020)
IRS stops sending nonpayment tax notices until it clears COVID snail mail backlog (Saturday, Aug. 22, 2020)
W&M chair to IRS: Stop sending COVID-delayed notices (Thursday, Aug. 20, 2020)
IRS knows some recently issued nonpayment notices are wrong. Now what? (Sunday, Aug. 16, 2020)
Get government benefits? Have kids? You get one more chance to claim added COVID cash (Friday, Aug. 14, 2020)
IRS now sending some erroneously denied COVID-19 dependent relief payments (Monday, Aug. 10, 2020)
Trump COVID executive actions sidestep stalled Congressional relief talks (Sunday, Aug. 9, 2020)
Home office tax deduction still available, just not for COVID-displaced employees working from home (Thursday, Aug. 6, 2020)
4 August tax moves to make during pandemic Dog Days (Monday, Aug. 3, 2020)

There also are some posts since the beginning of the pandemic that tangentially reference COVID-19's effects on taxes, but not enough so to make the official coronavirus cut for inclusion on this page.

If you're interested in seeing those, you can browse the new Coronavirus COVID-19 category. The posts above (as well as those on the other coronavirus pages) will show up, too, but just keep scrolling to find others that didn't make this coronavirus tax specific list.

Now to other off-blog resources.

First, there are the official government sites. The image above recommends Coronavirus.gov, which basically is a landing page (like this), so below are my suggestions.

Internal Revenue Service (IRS): Coronavirus Tax Relief and Economic Impact Payments

Treasury: How the Treasury Department is Taking Action

Centers for Disease Control and Prevention (CDC): Coronavirus (COVID-19)

Social Security Administration (SSA): Social Security & Coronavirus Disease (COVID-19)

Federal Trade Commission (FTC): Coronavirus - What the FTC is Doing

Health and Human Services (HHS): COVID-19 Portal

Consumer Financial Protection Bureau (CFPB): A guide to COVID-19 economic stimulus relief

Department of Education (Ed): COVID-19 ("Coronavirus") Information and Resources for Schools and School Personnel

Food and Drug Administration (FDA): Coronavirus Disease 2019 (COVID-19) Frequently Asked Questions

Federal Emergency Management Agency (FEMA): Coronavirus (COVID-19) Response (note the rumor control section)

U.S. Postal Inspection Service (USPIS): Coronavirus/COVID-19 Related Scams

USA.gov: Government Response to Coronavirus, COVID-19

And, of course, there are other sites following the pandemic's tax effects.

Many of my fellow tax bloggers are doing great jobs tracking the intricacies of COVID-19 tax changes. So are the members of the great #TaxTwitter community.

But in order to keep this page from following the excessive pieces of coronavirus legislation when it comes to length, I've focused below on web pages posted by professional firms, associations and other taxcentric entities that are providing valuable coronavirus-related tax information and advice.

National Association of Tax Professionals (NATP): COVID-19 Tax News & FAQ

American Institute of CPAs (AICPA): Coronavirus (COVID-19) tax resources (n.b., the state tax roundup)

Thomson Reuters: COVID-19 resource center

Wolters Kluwer: Coronavirus (COVID-19) Resources for Tax & Accounting Professionals

KPMG: Coronavirus (COVID-19) tax developments

Deloitte: COVID-19 tax policy updates

EY US: Responding to COVID-19

Grant Thornton: COVID-19 Resource Center

RubinBrown: Coronavirus Preparedness Resource Center

EideBailly: The New Coronavirus (COVID-19) Organiational & Individual Impacts

Institute on Taxation and Economic Policy (ITEP): COVID-19 Tax Policy Resources

The Tax Foundation: Tax Policy And The Coronavirus (note the state-by-state legislative and global country-by-country fiscal measures trackers)

Avalara: COVID-19 Tax Relief Roundup

Employee Benefit News (EBN): Coronavirus Impact

But wait, there are more: Naturally, things will change as the virus itself and our tax reactions to it evolve, so I'm asking for your help.

I know I've missed some good sites. Please let me know. I'll probably see your suggestions sooner if you let me know via Twitter where, in case you don't know, I'm @taxtweet. You also can drop me an email note.

I'll update this page as regularly as I can. You'd think that I'd have more time by essentially being on house arrest during Austin's coronavirus stay-home order, but it seems that the hours in the days also are affected by these bizarre circumstances (and my discovery of new things to stream).

Thanks for your assistance and patience. And, of course, be safe!

Taxes are important, but they are just taxes. The well-being of everyone and your families is everything, the only thing.

Original post began April 4, 2020

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Today's Tax Tip

Tax holiday shopping tips — Most U.S. classrooms, despite a COVID-19 Delta variant surge, are planning to welcome students back this fall. Several states also are getting ready with back-to-school sales tax holidays. Here are 6 shopping tips if you go hunting tax-saving bargains. (July 28, 2021)
The 2021 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. While we're waiting for the 2021 calendar pages to flip and fill up with timely tax tidbits, check out 2020 (and earlier) tax years' advice.

COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 tax season.
These three Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020,
August-December 2020, and
January-… 2021

All About Kay

OK, some about Kay

Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

My Other Accounts

Tick ... Tick ... Tick

Tax Season 2021 continues!
Tax Day 2021 is finally over … unless you're one of the millions who got an extension to file your 2020 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially in a year like this where it's dealing with so many other COVID-19 related tax tasks. But enough about Uncle Sam's tax collector. The focus now is on you and your still-to-be-completed 2020 return. Let's get started! Your new Oct. 15 tax filing deadline will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your returnon time. Once that's done, then look for tips each month that offer advice on ways to cut your still adding up 2021 tax bill.

Also keep an eye on the countdown clock below. It will help you track yet more days tick, tick, ticking off toward that absolutely final fall filing due date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

July 1: Today is the beginning the new fiscal year for many states, meaning some new tax laws take effect today across the country. They include a new tax on sports betting in Louisiana, rate changes in Idaho and Iowa, and tobacco-related taxes in Utah and Virginia. Your state tax department's website should have details.

July 4: Happy 245th Birthday, America!

Although the official federal holiday is Monday, July 5, most jurisdictions across the United States are holding festivities today and, for fireworks viewing, tonight. Enjoy your celebrations safely, from both coronavirus health and pyrotechnic perspectives.

Most of us will never be totally independent of taxes, but we can celebrate fewer tax hassles by paying attention to what we might owe and how we can reduce that amount throughout the year. Such attention to tax details is especially important given the changes and tax breaks created in response to the COVID-19 pandemic and its economic effects. One of those kicks in this month, with the Internal Revenue Service beginning delivery of advance payments of the Child Tax Credit (AdvCTC) to eligible families.

July 9 & 10: If you qualify for the AdvCTC but want or need help in filing a 2020 tax return to ensure you get the payments, the IRS is ready to help these two days. It and community groups in 12 metro areas are holding AdvCTC Free Tax Prep Days.

July 12: It's looking like it's going to be a more normal — remember what that was like? — summer, thanks to more of us being vaccinated against the coronavirus. That means more restaurants will resume table service. Be sure to share your happiness about being served in person again with your waiters. If you're still a bit hesitant about going to a packed eatery, also tip the food delivery folks still bringing meals to your door.

If a tip isn't included in your restaurant check or food delivery charge, click the image above to calculate how much to tip.

Those of you getting the tips, remember that your tips are taxable income. If you got such added financial thanks that came to a total of at least $20 last month, whether as a waiter/waitress or hair stylist or valet or whatever job where gratuities are common, you need to account for them today. Report them to your employer on Form 4070.

July 15: This is the day the AdvCTC should start showing up if you provided a bank account for direct deposit. While the payments aren't taxable income, if your family situation has changed in 2021 from the 2020 tax data used to calculate it, you might have to repay some of the early credit amounts when you file next year.

July 19: Speaking of life and family changes, if you've had any since last tax year, it's time for a paycheck checkup. This will help determine whether you need to adjust your payroll withholding. Even if things haven't changed, a withholding review is warranted if you were surprised by the refund you did (or didn't) get last year.

July 23: Potentially destructive weather is one area where you definitely don't want surprises. We're well into the Atlantic/Gulf of Mexico hurricane season. There were three named storms in June, but so far the United States has been lucky. No major storm has hit, as least not as I type this on July 1.

The longer it takes for storms to form, the longer we have to prepare for what the National Oceanic and Atmospheric Administration (NOAA) expects to be an active 2021 tropical storm season. Even if we don't get the predicted 20 named storms, with possibly 3 to 5 reaching major status, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.

You also might want to check out the ol' blog's special Storm Warnings.
These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild. That includes claiming uninsured losses from a major natural disaster as on itemized tax deduction.

July 28: Speaking of filing, if you got an extension back in May, giving you until Oct. 15 to finish your 2020 tax return, you don't have to wait until then. You can get to work on that now. And whenever you do get around to finishing your taxes, the IRS recommends you do so electronically. You can do that and possibly save some money by using Free File, the online no-cost tax preparation and e-filing partnership between the IRS and Free File Alliance.

The official Free File site at IRS.gov this season offers nine participating tax software options if your adjusted gross income is $72,000 or less, regardless of filing status. If you make too much to use the online software, look into using Free File's fillable forms. Both the online Free File and fillable forms are available through October's extension due date.

July 30: Wow, the end of the month is already here! That means the new school year is just around the corner. So are the usual back-to-school sales tax holidays. Although Alabama kicked off the tax-free events on July 16, most are in August. But four more state sales tax holidays begin this final July weekend. You'll find details on the ol' blog as the details are firmed up and near this and next month. Until then, you can get an idea of shoppers' potential tax savings by reviewing 2020's sales tax holidays.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Publication 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms Fiesta! page.

What are you looking for?

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0, 1, 2, 3, 4, 5, 6, 7, 8, 9 ...

Taxes are all about the numbers.
Check out these (mostly) weekly
By the Numbers figures.

Kudos Et Cetera

National Association
for Women in Communications
Winner, Best Personal Blog
2012, 2014 & 2017
Plutus Financial Bloggers Awards
Celebrating the Best
in Personal Finance
Winner, Best Tax Blog
2011 and 2013
Lifetime Achievement Nominee 2020

I gotta tell ya ...

AKA Disclaimer:
I am a professional journalist who has been covering tax issues since 1999.
I am not a professional tax preparer.
The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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is a registered trademark
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July 2021

Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. So if you have an issue with tax legislation or want a tax bill passed, use the federal legislator locator above to find just who on Capitol Hill should hear your concerns. And for matters tax or otherwise closer to home, you can find info on your state and local elected officials at USA Gov.

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