Did you receive unemployment benefits in 2020?
If you received unemployment income in 2020 and have not yet filed your return, the IRS is recommending that you wait to file. They have created a worksheet for paper filers, and they are working with the software industry to update current tax software. This is so taxpayers can determine how to report the income on their 2020 tax return.
If you have already made an unemployment benefit payment, the IRS will update your tax return [read more]
With the enactment of the American Rescue Plan Act (ARPA) of 2021, there is a retroactive provision that makes the first $10,200 of 2020 unemployment benefits nontaxable. This, in addition to new Economic Impact Payments, the expanded Child Tax Credit, the advance payments of the Child Tax Credit and other tax provisions need to be reviewed by the IRS. They will determine and provide next best step(s).
We will keep you informed as more information becomes available.
Questions? Please contact us at 401-831-0200.