If The Current Stimulus Program Is Passed...

According to the information I'm seeing, unemployment income for the 2020 tax year will not be taxed at the federal level. If the current Stimulus Program passes, and unemployment income received in 2020 becomes not taxable, how will TurboTax handle amended returns for people like myself who have already filed and received their Federal refund for 2020? I received close to $9500 in unemployment benefits for tax year 2020, which increased my AGI substantially and reduced the amount I received for the EITC as well.

445

Expert Alumni

Mar 9, 2021 1:31:17 PM

The new proposed bill is expected to exclude up to $10,200 of unemployment benefits in 2020 from taxable income.

However, the bill is not enacted into law yet. When it becomes law, the IRS will provide guidelines on what taxpayers need to do. And TurboTax will always timely assist their customers.

Level 15

Mar 9, 2021 1:32:41 PM

We don’t know if the IRS will handle that or if all software tax programs will have to be patched so returns can be amended.

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If The Current Stimulus Program Is Passed...