When originally announced, the IRS advised that amended returns from early filers were discouraged, suggesting instead that we should claim the deduction in the 2021 tax year. However, today I read that this direction may change for some of us since the new American Rescue Plan was signed in March. From the article:
- "'There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return,' the agency said."
If I understand this correctly, those of us with newly adjusted AGIs below $150k should now amend their return since that is a key threshold for several other deductions and stimulus-related programs.
Here are my questions:
- The article also states that "Workers can exclude [UI] aid when calculating their modified adjusted gross income." Does this mean exclude the entire amount of UI income received or just up to the $10.2k deduction limit? If it's the latter, does the deduction extend to 20.4k for Married Filing Jointly?
- If new AGI is less than $150k following the UI deduction, will affected filers also now qualify for the stimulus payments and child tax credits that are precluded for those making over that amount?
- Finally, what is the proper guidance for those of us affected by this? To amend or not to amend?
I'm hoping that someone with true knowledge on these topics can respond with answers here. There's a lot of additional potential benefits here, and we need direction on whether filing an amended return makes sense now. TIA!
