Tax season looks different this year amid pandemic

Mar. 7—As tax season gets into full swing, people will find some changes this year when it comes to filing taxes amid the COVID-19 pandemic and they also could get more financial relief.

Mark Mihalka, who owns 11 Liberty Tax Service locations throughout Northeast Pennsylvania, said they are encouraging people to drop off their tax documents to limit interaction as a safety precaution.

"It's easier to have them drop them off and then we call people and ask them questions instead of talking with masks on and barriers," he said. "It's easier to talk on the phone."

Sneeze guards and other safety precautions were set up inside Liberty Tax Service locations.

People can still come to a location in person and talk to socially distanced tax professionals who can answer questions about their tax returns, Mihalka said.

If people don't want to come to a location in person, he said they could send out signatures remotely through email and texting.

"They're still getting the tax professional aspect of dealing with local representatives," he said. "It's not 100% online. It's like a hybrid method."

The IRS recently extended tax deadlines for Texas and Oklahoma residents as a result of recent winter storms but April 15 remains the tax filing deadline in Pennsylvania.

Milhalka said the most common questions he hears during tax season this year are related to unemployment benefits and stimulus money.

An initial round of $1,200 stimulus payments went out to eligible adults and $500 for dependents under age 17 last spring followed by a second $600 stimulus check.

"If they didn't get their money, we have the ability to get it on this year's return," Mihalka said. "We've been helping a lot of people get it."

President Joe Biden has been pushing for a $1.9 trillion COVID-19 relief bill with additional $1,400 checks.

In the meantime, Mihalka said phones at Liberty Tax Service have been "ringing off the hook" with people asking about the possibility of receiving a third stimulus check but the proposed stimulus deal was not passed into law.

If people have been working from home during the pandemic, Mihalka said the federal government got rid of a home office deduction on federal returns due to changes in the tax code.

On local and state tax returns, however, they can claim unreimbursed employee business expenses, he said.

"If they're required to work from home and there's no space for them to work at their job, then they could deduct that," he said. "It's not a huge savings but every penny counts."

In Wilkes-Barre, the Commission on Economic Opportunity has been operating the Volunteer Income Tax Assistance Program and eligible taxpayers can drop off their tax documents at a site at 165 Amber Lane and pick up the completed tax returns when done.

The initiative is designed to support free tax preparation services for low to moderate-income people, people with disabilities, the elderly and limited English speakers.

With other places like Wilkes University, senior centers and AARP canceling local services to help people prepare their taxes due to concerns about COVID-19, Commission on Economic Opportunity VITA coordinator Barb Rupert said CEO is the only free tax site locally.

And, Rupert said volunteer tax preparers at CEO's office in Wilkes-Barre have been very busy.

"We have not slowed down," she said.

In the past, Rupert said appointments would be scheduled with volunteer tax preparers and taxpayers.

Now, she said they're asking people to drop off their tax documents amid the pandemic from 9 a.m. to noon and 1 to 4 p.m. on Monday through Thursday.

This is making the process more difficult since people aren't sitting with tax preparers who can answer questions, Rupert said.

Tax preparation packets are available for people to pick up at the CEO site on Amber Lane. The packets include instructions on completing forms, drop-off procedures and eligibility guidelines. VITA tax preparers only complete basic tax returns.

Rupert said the only face-to-face contact clients have are with the person verifying their identities and making certain all tax documents, forms and signatures are in the drop-off packets.

Taxpayers will be asked if they received their first and second stimulus payments and how much each payment was. If they are uncertain, they should go to www.irs.gov for payment date, method and amount.

"If either payment was not received, it is entered onto the income tax return and will be recovered through the tax refund," Rupert said.

For more information on eligibility and drop-off procedures for the CEO's VITA program, call 570-825-0968.

The program also is seeking volunteers who are willing to receive training to help people prepare their tax returns. Anyone interested in volunteering can call 570-826-0510 ext. 272 or email brupert@ceopeoplehelpingpeople.org.

Taxpayers can prepare their own taxes for free online at IRS Free File on the IRS.gov website or on the website myfreetaxes.com.

Taxpayers who need help preparing their property tax rebate or rent rebate forms also may find assistance at their state representatives' offices.

Contact the writer: dallabaugh@citizensvoice.com, 570-821-2115, @CVAllabaugh