The IRS Commissioner today told Congress that recipients of unemployment compensation who've already filed should not file an amended return because IRS thinks they can take care of it themselves:
"IRS Commissioner Charles Rettig said Thursday that he expects to announce soon that people who received unemployment benefit last year will be able to get a tax break included in President Biden's coronavirus relief law without needing to file amended tax returns."
"Rettig said that he anticipates that the IRS will be able to help unemployment recipients receive the tax exemption without them needing to take additional action. "We believe that we will that be able to handle this on our own," he said. "We believe that we will be able to automatically issue refunds associated with the $10,200."
"Unemployment recipients who filed their returns prior to the enactment of the relief package will receive refunds initially that don't reflect the $10,200 exemption, and then will later receive additional refunds, Rettig said." https://thehill.com/policy/finance/543916-irs-chief-unemployment-recipients-shouldnt-file-amended-ta...
Comment:Interesting but I still wonder how they would handle the other income related credits that the reduced AGI from unemployment would impact, as well as how state returns would be affected by the IRS recomputation?
