OpeA1
Employee Tax Expert

Get your taxes done using TurboTax

Hello Meeshi73!

 

Yes, this is true on the first $10,200 of the amount you received.

 

For tax year 2020, As part of the American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for a person with an annual modified adjusted gross income of less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.  If you filed your tax return before the law was enacted then the IRS will automatically send the refund, if the adjustment did not affect other areas of your tax return.  The IRS has been making adjustments on tax returns and issuing refunds.  If you have not received your refund yet, the IRS has said that they will be sending refunds throughout the summer which doesn’t officially end until September 22nd.  

Additional information can be found here: https://blog.turbotax.intuit.com/tax-news/am-i-eligible-for-the-new-unemployment-income-relief-49427... 

 

https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"