Unemployment tax relief questions

[teala0041]

I have been waiting so patiently to find out more information on the tax relief for unemployment. Nothing has updated. When will we be updated on states and federal? Is the IRS going to correct the taxes of individuals that filed their 2020 tax return? When will we know? When will we receive those funds if we are owed anything? 

[VolvoGirl]

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-m...

You can log back into your return and it should automatically update your return and show you the new refund.  But the updated return won't be sent.  The IRS will adjust it for you.

If you have unemployment you can exclude up to 10,200 if your income is under $150,000.  Your unemployment compensation will be on Schedule 1 line 7.  The exclusion will be on Schedule 1 Line 8 as a negative number. The result flows to Form 1040 Line 8.