kdevere
Employee Tax Expert

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If you had taxes withheld from your unemployment compensation, or paid taxes when you filed your return you may be eligible for a refund.  The IRS will deposit the refund into your bank account, if you provided that information when you filed your 2020 tax return, or will mail a check.

 

The IRS has determined the criteria to be eligible.  Per the IRS, "if your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200. If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If your modified AGI is $150,000 or more, you can’t exclude any unemployment compensation. If you file Form 1040-NR, you can’t exclude any unemployment compensation for your spouse."  (https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation)

You do not need to amend your return; the IRS is currently processing these refunds.  

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