JotikaT2
Employee Tax Expert

State tax filing

Perfect!  Thank you for doing that as it helps determine what your next steps should be.

 

Since the overall changes in the tax treatment of your unemployment resulted in the credits you are entitled to on your state return, you may need to amend your state return. 

 

However, I suggest waiting just a bit longer until the IRS provides concrete details on how taxpayers should proceed with the returns filed before the American Rescue Act was enacted.  Currently the IRS is saying do not amend your federal return for unemployment compensation if you have already filed.  However, they are still updating their website and until they issue concrete information, waiting may be better to ensure you do not have to file an amended return for state twice should they change their guidance.  

 

Please see the link below for updates from the IRS as they periodically update their site with more information in regards to the unemployment income treatment.

 

Unemployment claimed on returns already filed

 

State updates to unemployment

 

Should you decide to prepare your state amended returns anyways, you can do that using the instructions in the link below.  Just be aware you may have to amend again if the IRS changes their treatment of the unemployment income.

 

How to amend my return?

 

 

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