Kobaly Tax Service
Current Information


  • The 2020 tax deadline has been extended to May 17. However, we will not be available after April 30. We will not be taking any appointments after April 8. If we cannot complete your returns before April 30, we will need to file an extension for you and you will need to pay any estimates by May 17 to avoid penalties. The easiest way to pay is to go to irs.gov/payments and pay using EFT from your checking account, which is instantaneous and free. If we have not finished your return, you will have to make your best guess.

  • 2020 Unemployment Exemption. The first $10,200 of 2020 Unemployment Benefits is now tax-free for each individual or couple with income under $150,000. If your return is e-filed after March 22, 2021, all is well as the change and exemption is included in our tax program and at IRS. However, if we e-filed your return before March 22, 2021, the situation is still murky. If you were getting a federal refund, IRS will be eventually automatically amending your return and sending a refund. If you owed and already paid, we will wait for the IRS to amend your return. However, if you owed and have not paid, we do not yet have guidance. The most direct approach would be to make the full payment and wait for IRS to amend and refund. However, if you are reluctant to make the full payment, I can make the change to your return and give you a new voucher for the reduced amount. However, I do not know IRS will deal with the situation. We have already e-filed some amended returns to claim the exemption and refund and are not sure how IRS will sort this out, and we do not yet have guidance.


  • COVID Economic Impact Payments (EIP). None of the COVID payments are taxable, but we need to know if, when, and how much you received to put on your tax return to ensure you got everything you were entitled to. To date, there are 3 payments:
    • EIP1 -- the first payment was sent out in April/May of 2020 and was $1,200 per person and dependent age 16 or under.
    • EIP2 -- the second payment was sent out in December 2020/January 2021 and was $500 per person and dependent age 16 and under. Even if your payment was sent and/or received in 2021, it is reported on your 2020 tax return.
    • EIP3 -- the third payment was sent out in March 2021 and was $1,400 per person and dependent of any age. This payment will be reported on your 2021 tax return.

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