Unemployment Tax Law Changes
Unemployment Taxability Changes
The American Rescue Plan signed March 11, 2021 allows each U.S. Taxpayer (does not apply to non-residents) to exclude in 2020 up to 10,200 of Unemployment from their taxable income as long as your Adjusted Gross Income is less than $150K.
“If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.” — IRS Website
To Read More Visit
