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New Member
posted Mar 16, 2021 11:08:27 AM

I had paid taxes on unemployment benefits in 2020. How do I now get the first 10,200 of tax payments reimbursed or reflected prior to filing?

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4 Replies
Expert Alumni
Mar 16, 2021 3:12:23 PM

Hang tight. We are waiting for the IRS to provide guidance on how you can claim these additional American Rescue Plan benefits soon. 

Returning Member
Apr 13, 2021 5:30:29 PM

I still could not find out how to get the first 10,200 of tax free of my unemployment benefits.

Level 15
Apr 13, 2021 5:32:51 PM

It is automatic.  Unless your AGI is over $150,000 then you don't qualify.  Just enter the 1099G.  Or did you already file?  

 

The exclusion will be on Schedule 1 Line 8 as a negative number. Your unemployment compensation will be on Line 7 of Schedule 1. The result flows to Form 1040 Line 8.


If the exclusion is not showing up then delete the 1099G and re enter it.


If you already filed and didn't get the 10,200 unemployment exclusion you do not need to amend. The IRS will be adjusting it for you. See,
https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

 

 

 

Level 1
Apr 13, 2021 5:36:03 PM

You don't need to do anything about that. Tax software does it automatically.