FARGO — If you needed any kind of financial help last year because of the pandemic, it could change how you file your taxes.
Devon Liljenquist, the president of Arrow Advisors in Fargo, said for people who claimed for unemployment insurance, it is taxable for both the Internal Revenue Service and state governments in both North Dakota and Minnesota.
People who got unemployment benefits are able to withhold up to 10% of them before getting taxed on the rest, according to federal law.
For people who were eligible for the stimulus checks, those aren't considered taxable income, but rather a credit on your tax return, according to Liljenquist.
Liljenquist said if people didn't get any of the checks in 2020, but are eligible for them, they have to make sure they write the amount of the checks on their tax forms this year in order for the checks to show up on their returns.
"It's just basically a way to double check that everyone got the stimulus they were supposed to get, so it's just an extra step on the tax return this year," he said.
Liljenquist added another loan people are concerned about are Paycheck Protection Program loans, which he said don't count as taxable income for North Dakota business owners, but do count for Minnesota business owners, according to the Consolidated Appropriations Act passed by Congress last December.
The deadline to file taxes is still set for April 15, 2021, but Liljenquist isn't ruling out the possibility of a deadline extension, much like what happened last year.
"Hopefully, we can just keep with the April deadline, but we'll have to see if the IRS is able to do that," he said. "I know that they're pretty behind right now."