State Unemployment Wavier

[bluetopaz89]

I have already filed my 2020 taxes However I received unemployment from the state of South Carolina. The POTUS has waived the unemployment up to certain amount. For people who have received unemployment I contacted Turbo Tax support about the waiver And was told to file an amended return after March 25th Recently the IRS stated that it would not be necessary to file a 2020 amended return.  Im not sure what to do at this point I have not received any information about how the IRS is going to handle the waiver Or what steps to take or information that I would need to send to the IRS  

Daniel R. McFarland    

[email address removed]

[DoninGA]

The IRS has requested that you do Not file a 2020 amended tax return at this time for the exclusion.

See this IRS statement - https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance.

[bluetopaz89]

Thank you for the info I did forget to tell you that I did owe both federal and state taxes. Because of the unemployment MJF is my filing status with no dependents So I need to wait until I hear from either the IRS or Turbo Tax to get the information and go from there?  I do know the filing date date has extended until May 17th

Thank you again 

Daniel 

[DoninGA]

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@bluetopaz89 wrote:

Thank you for the info I did forget to tell you that I did owe both federal and state taxes. Because of the unemployment MJF is my filing status with no dependents So I need to wait until I hear from either the IRS or Turbo Tax to get the information and go from there?  I do know the filing date date has extended until May 17th

Thank you again 

Daniel 

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Hopefully you will hear from the IRS before May 17.

This is a new statement just issued by the IRS on 03/23 -

If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.

https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation

[bluetopaz89]

I check the status of my 2020 returns The Federal has updated and now shows that I will be getting a refund However the South Carolina State Tax shows that I still owe. Will the state of SC be doing the state with the wavier or will I have to file a SC Amended Return?  

Daniel R. McFarland 

[gloriah5200]

Many of the states are slowly making determinations of how they will handle the changes from the American Pension Plan Act on the state returns.  It did only pass a few weeks ago.

UPDATED: March 25, 2021

We’re still waiting on how individual states are handling American Rescue Plan changes, and whether or not you’ll need to amend your state return for your unemployment income.

Check back next week for individual state updates.

If you need to amend your state return or update something other than unemployment, try again after next week. We want to make sure your amendment is done quickly and accurately with the latest guidance from your state.

Related Information:

• Do I need to file a federal return this year?
• Why is my unemployment being taxed?
• Do I have to pay taxes on unemployment?
• How do I report unemployment if I didn't get a 1099-G?

Please refer to the following link for additional information and "Do I need to amend my state return to update my unemployment?":

How are states handling the federal unemployment

[Edited 03/30/2021|6:43 pm pst]

[bluetopaz89]

Thank you for the information 

Daniel