Did you receive unemployment compensation in 2020?
Were you unemployed for some or all of 2020? If so, you may be entitled to a waiver on the first $10,200 of unemployment benefits you received.
The American Rescue Plan Act, which signed into law on March 11, 2021 waives taxes on the first $10,200 of unemployment benefits that you have received in 2020. This number is doubled to $20,400 for married couples.
Who is eligible?
The tax break eligibility depends on total income. Eligibility applies only to those earning less than $150,000 in 2020, and applies to all taxpayers, regardless of filing status.
What if I already filed my tax return?
Those who have already filed their income tax return are instructed to delay filing an amended return in order to comply with instructions that have recently been issued by the IRS. Plans to carry out the newly-signed legislation is being reviewed by the IRS.
Reach out to us, we can help!
Some taxpayers who were responsible for a large tax bill on their unemployment benefits may now be struggling to determine how to recover those funds. Feel free to contact us for advice on how the new rules will affect your tax situation. Give us a call at 248-362-1313 or fill out the contact form below.
