Mar 102021

One of the many provisions of the American Rescue Plan which is expected to be signed into law in the coming days is the exclusion from Federal income tax on the first $10,200 of unemployment benefits paid in 2020. (This is only for benefits paid in 2020, and does not apply to any benefits paid in 2021.) It is currently unknown if any states will handle these payments similarly.

We will be available to amend 2020 returns which have already been filed to recover the tax on these benefits, but only after the scheduled April 15, 2021 deadline for the current income tax filing season. That should give everyone sufficient time to determine how these adjustments should be made and whether the particular state(s) involved may also require amendment. Note that there will be preparation fees associated with these amendments.

Be sure to contact us to discuss this, but please wait until after our tax season rush has concluded.

 Posted by at 8:58 am

Sorry, the comment form is closed at this time.