If I were in your situation, I would wait and view how the implementation of the American Rescue Plan shakes out. Since you owe, it would not hurt to wait a week or two and see what details are revealed, if any.
If you file today and make payment in full, you should be eligible for a refund of the overpayment because the unemployment provision will be retroactive to tax year 2020.
If the bill is signed in a few days, it will still take some period of time for the IRS to reveal how it will implement the law and even more time for the software providers to update their software and have it approved by the IRS.
TurboTax is reporting that the American Rescue Plan will include some form of 2020 unemployment relief.
The bill also makes the first $10,200 of unemployment income tax-free for households with income less than $150,000. This provision would be retroactive to tax year 2020 (the taxes you file in 2021).
It is not clear how or when the IRS will implement the new law.
The IRS considers unemployment compensation to be taxable income which you must report on your federal tax return. State unemployment divisions issue an IRS Form 1099-G to each individual who receives unemployment benefits during the year. States vary in how they tax unemployment compensation.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
