IRS will Update Tax Return

If you already made an unemployment benefit payment, the IRS will update your tax return.

The IRS says “Do not file an amended return at this time” to those who submitted their tax returns prior to Congress making unemployment benefits payments tax-free for 2020. They will automatically process refunds for individuals who have already paid taxes on their jobless benefits but are not eligible to exclude the benefits from federal income. The recent stimulus bill included a provision that exempted up to $10,200 of unemployment compensation from federal income taxes for households earning as much as $150,000. Many states did not automatically withhold taxes on unemployment payments.

If you discover that fraudsters have made an unemployment claim using your stolen identity, be sure to inform your state about the problem and the IRS should reconcile the income data with that state.

For more information or questions please contact us at 401-831-0200.

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