The current income tax filing season remains taxing for preparers and possibly for filers.
University of Kentucky Associate Professor of Accountancy David Hulse says 2021 is likely more challenging than a normal tax year, but maybe not as bad as a year ago when the pandemic provided more of an interruption. Hulse says employees who live and work in other states, but chose to come back to native Kentucky during the past year may experience some long-distance claims. “Some states are taking the position that because that jobs have historically been in their state, the fact that that individual is temporarily working out-of-state does not deprive them of the opportunity to tax that income,” said Hulse.
The $1.9 trillion COVID stimulus bill includes a provision for a tax break on $10,000 in unemployment benefits. While the IRS a year ago extended the filing deadline to mid-July, Hulse said an IRS leader has indicated no extension is in the works this year.
Here's more with David Hulse:
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