GREENVILLE, N.C. (WNCT) – The time to file taxes is almost here, and while this year’s tax season will be shorter than years past, it is arguably one of the most important years for filing.
That’s because of the coronavirus pandemic. Big changes due to COVID-19 will have a big impact on what you may owe, or how much you may be due.
9 On Your Side spoke with a local tax professional and general manager at Liberty Tax, Carol Haddock. She said some people may face double tax hits this year. Many people have been forced to work remotely, and that includes being in a different state. However accessible that may be, it may also come with a price.
“The state [teleworkers] live in will usually give them a credit for the taxes they pay to another state so they are not being double taxed,” Haddock said.
Commuters in certain states are usually covered by agreements that avoid double taxation. But since the pandemic has caused people to move, teleworkers who went elsewhere may be hit with extra income taxes from the state where their company is based.
North Carolina is one of those states where people are at risk of double taxation.
9OYS also reached out to the North Carolina Department of Revenue in regards to nonresidential North Carolina employees being taxed. They responded with the following statement:
When it comes to stimulus payments and filing your taxes, experts say that is much simpler.
We will be able to go in and do what they call a rebate tax recovery and put in that they did not receive the stimulus payment yet and put in the amount that they were qualified for and it will be included into their tax refund.Mike Gurrera, Owner of Liberty Tax Franchise in Greenville
Eligible persons that did not get their full second stimulus payment will be able to get that money back by claiming a rebate recovery credit on their tax return.
Guerra, Haddock, and other tax professionals say it is important to do your research before filing this year to learn what agreements and policies are available to you. They say you should also talk to your employer about what income taxes apply to you and your work situation.