Global News

[ad_1] The IRS is asking millions of taxpayers more than 20 states including California, Colorado and Florida who received tax rebates last year to hold off on filing their taxes.  The reason: The agency said it is seeking to clarify whether those tax rebates and special refunds are considered taxable income. "We expect to provide additional clarity for as many states and taxpayers as possible next week," the IRS said on February 3.  On Friday, the IRS provided guidance to those taxpayers: For the most part, those rebates aren't taxable.  "During a review, the IRS determined it will not challenge the taxability of payments related to general welfare and disaster relief," the tax agency said in its February 10 update . About 16 million California residents received " middle-class tax refund " checks of $350 per eligible taxpayer last year, part of a relief package designed by the state to help residents...

[ad_1] Millions of Americans worked from home — at least partially — during the coronavirus pandemic years and now many are wondering if they can claim the home office deduction on their federal taxes. The answer depends on what type of an employee you were the year prior, said Julia Glum, a news editor at Money. "Unfortunately, in general, if you are an employee, you do not qualify for a home office deduction," Glum told CBS News.  For the last few years, the only people who qualify for the deduction are self-employed, small business owners, freelancers or other types of independent contractors. The home office deduction allows these workers to subtract the money they paid for home office expenses from their income, thus reducing their overall tax liability for the year. Those who qualify can deduct things like desks, home repairs, office supplies and portions of their mortgage interest and utilities, she added. Homeowner...