@ssorkram wrote:
That does not help taxpayers much then if it will take months. That would mean I would need to pay the entire amount and cross my fingers that the IRS will refund me the difference. Would you suggest that I file for an extension in hopes the refund difference outweighs the penalty for not paying by April 15?
I would wait for a few weeks to see if the IRS gives guidance on how this unemployment compensation exclusion is going to be handled. You can always file for an extension on or before April 15, 2021. However, if you have taxes owed on the current 2020 tax return, those taxes still have to be paid on or before 04/15 to avoid a failure to pay penalty and interest on the unpaid taxes.
