Do I have to declare the interest paid from student loans? Last year, interest payments were suspended but were incurred for a couple of months. I was trying to do daughter’s taxes and turbo tax says I need to use their deluxe version to claim a very small amount of interest paid. The tax saved is minuscule compared to the cost to upgrade it. Without it, I can use a “free” program.
Unemployment will be counted in gross income, correct? Trying to figure out if it helps to file early as far as the new round of stimulus checks are concerned. She thankfully had taxes taken out of her unemployment but it wasn’t enough.
I know these are silly questions. I welcome any others to post their 2020 tax questions
You don’t “have” to claim the interest paid, as far as I know (you always have to claim interest earned, of course).
Stimulus payments are not taxed, but unemployment payments are. So one wouldn’t affect the other, and the timing of tax filing wouldn’t make a difference for the stimulus check. Are you concerned that her 2020 income will exceed the maximum for a stimulus payment due to the unemployment?
If she files now, her income from her job will be under the threshold. If unemployment is added in, her income will be the same as last year and so won’t change the amount she will be eligible for.
I think she paid under $100 in interest last year and her taxes went down $4. TurboTax is trying to charge $40 for federal and $40 for state to upgrade to their “deluxe” version.
As far as the TurboTax deluxe upgrade is concerned, I purchased a deluxe combo pack (Federal + 1 state) for far less than $80. A search, or your favorite discount retailer ought to be able to find a better cost option.
I have used TT for years - but rarely purchase directly from Intuit. (Anyone else remember the “Elvis lives” Easter egg from quite some time ago?)
