Filing your taxes breeds insecurity and anxiety for the average American. For 2020, nothing was the same — and this includes taxes. Whether you are planning on doing it yourself or hiring a professional, starting to collect and organize your finances now will pay off in the long run. Be sure to check on these helpful tax deductions and filing tips.

Stimulus Checks

Good news — money from your stimulus checks is non-taxable, meaning you don't have to include this income on your yearly tax return. Check that you received and kept your Notice 1444, which can give you more insight into your particular situation. You may even be eligible for a further stimulus in the form of a recovery rebate.

File Sooner

Filing your taxes before April can result in drastically faster returns. If you expect to receive money back, you won't want to wait in the long virtual lines that form after April 15th — the sooner the better. Filing earlier can also affect the amount of your potential 2021 stimulus check, since any updated information like a loss of income or added dependent could make your household eligible for more. When all else fails, file an extension. An extension gives you 6 more months to finalize your finances, has no penalties, and can save you significant stress.

Home Office Deduction

Did you know that you can utilize a home office deduction? Because so many people worked from home in 2020, you may be eligible to write off upgrades and changes you made to your home workspace — a new computer, desk chair, and even certain construction costs can all potentially be deducted. It's worth looking into how to make the most of your home workspace expenses.

Earned Income Tax Credit

This is a widely overlooked tax credit that 25% of eligible people fail to utilize each year. 2020 could prove to be the largest batch of Americans ever able to use this on their taxes. Some of the qualifications include those who lost a job, took a pay cut, or worked fewer hours during the year — sound familiar? Make sure you check whether you qualify before filing.

Filing your taxes can be a stressful activity, but with these helpful tips and useful deductions, you may actually breathe a sigh of relief when the process is over! Keep checking back to the Kratos Gas and Power blog for lifestyle posts everyone can use!