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Preparing to File Your 2020 Taxes: What You Should Know

Job losses, furloughs, and business closures due to the COVID-19 pandemic forced a record number of Kentuckians onto state unemployment rolls in 2020.

Now, some taxpayers may be in for a shock when they file their state and federal tax returns this year.

Steve Wheeler is a CPA and partner with Carr, Riggs, and Ingram in Bowling Green.

"For those individuals who have received unemployment benefits for a substantial part of 2020, they will have to report that as taxable income and unfortunately, unless they had taxes whitheld, there have been no withholding taxes on that income," Wheeler said.

Wheeler says taxpayers can learn more online at the IRS website.

He adds that unless taxpayers are filing a simple return, they should consult qualified tax preparer with 2020 tax questions.