My situation is that I rec'd a lump sum payment of unemployment benefits in 2021 of $32,450. Of that amount $18,080 was related to delayed payments that were payable for bi weekly payment periods for 2020.
Had the payments related to 2020 been paid timely I would have been able to recognize them in my tax return for that year (2020) and effectively not paid any tax on them. My only other income is social security and a small amount of residual income. By allocating by the respective years I would how little or not tax.
But recognizing all of the delayed unemployment benefits in a lump sum in 2021 it creates a situation of making my social security taxable (85%) thus owing tax for 2021.
Is there any method to recognize the 2020 delayed payment portion ($18,080) by amending my 2020 return and only recognize the 2021 unemployment benefits paid in 2021 tax return.
