Despite extension, Cape County tax preparer says most have filed

Jackson's Odie Lingle has been preparing income tax returns for most of his adult life and said Friday the vast majority of his office's clients have already filed -- despite the federal government and State of Missouri extending the deadline to do so by a month, to May 17.

"I would say probably 90% to 95% of (our) Form 1040 taxpayers filed by April 15," said Lingle, a 1973 Southeast graduate and an enrolled agent with the H&R Block office on Walton Drive. "I think most people would just as soon get it done and off their minds."

The pandemic is not over, but Lingle said the general attitude of taxpayers seems considerably different than a year ago.

"Last year, we had a two-month extension, and we had a lot of people postpone (filing) but that was primarily because the governor had issued a stay-at-home order," Lingle said.

Gov. Mike Parson's original stay-at-home directive was at the apex of tax season, lasting from April 6 to April 24, 2020.

Parson's order was later extended until May 3.

Tax items of note

• "For 2020, there is a maximum $300 'above-the-line' deduction for charitable contributions that you don't have to itemize," Lingle said, adding the donation must be via cash or check.

"If you gave clothing to Goodwill, for example, you couldn't claim it in that $300," he added.

For 2021, the above-the-line maximum charitable deduction will double to $600.

• Stimulus

Lingle advises federal stimulus payments are not taxable but there is a caveat some taxpayers should note.

"If you were entitled to get a stimulus in 2020 and for some reason you didn't receive the full payment due, you could claim the amount not received on the 1040 form," he said.

• Unemployment

On March 11, President Biden signed the $1.9 trillion American Rescue Plan, which among other benefits, made the first $10,200 received in unemployment benefits not taxable.

"For people who had filed their taxes before the bill became law, the Internal Revenue Service said it will make an adjustment when the return is processed," said Lingle, who adds the same law also forgives -- for 2020 only -- paying back any excess premium subsidy received through the Affordable Care Act if a person's income ends up being more than they had originally estimated.

"Supposedly, the IRS is going to make a correction to these returns, too, if people have already made the payback," he added.

Lingle said across the United States, approximately 60 million returns had been filed before the 46th president signed his name to the legislation.

General advice

Lingle, who worked for the IRS for five years early in his career, is qualified as an enrolled agent to represent people before the agency in tax matters.

"All my career I've suggested to clients to go ahead and prepare your taxes as soon as possible and get them filed if due a refund," he said, adding a rapid filing will ensure taxpayers will get money back that much faster.

"Conversely, if you discover you're going to owe, then wait until May 17 to pay," Lingle suggested.

"Get your taxes ready ASAP, and if you ending up needing to pay the government, then you've got a month or so to get the money together," he said.

As usual, Lingle said, a taxpayer may opt to file an extension until Oct. 15.

"That's only an extension to file," Lingle said, "because what you owe is still due on May 17 this year."