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Does the extra federal unemployment received in 2020 affect our tax return? Ours was accepted by the IRS on Feb 12 and we still have not received the tax refund?
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After you file
The IRS has announced that they will correct returns impacted by unemployment payments and issue refunds starting in May.
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After you file
It depends. As far as the unemployment payments go, there is a provision recently passed by the American Rescue Plan that will exclude up to $10,200 or $20,400 if filing Married Filing Jointly. This adjustment will be made automatically by the IRS without need to amend your return unless there are calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
Because of COVID 19 and all the other changes that are occurring, you may expect some delay in processing your return. Check back with the IRS periodically here to check the status of your return. The IRS may be delaying your return so that changes can be made due to the American Rescue plan. Here is their more recent statement regarding the third round stimulus payments.
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After you file
Read what the IRS said yesterday https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-m...