I already filed taxes for 2020 with my unemployment earnings. Now that I found out about the American Rescue Plan Act of 2021 with taxes being forgiven. what do I do?

[wcwblingman]

I owe 1,676 to the feds in taxes now. How will this be affected? Thank you

[LenaH]

It depends. The IRS will provide additional guidance about what you need to do to take advantage of this relief if you already filed your 2020 tax return. 

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020. 

If you’d like to be updated when the information becomes available, please sign up here.

[gailbill1995]

I have filed my taxes for 2020 and i received unemployment payments totaling $13,474.00 and I had $1349.00 federal tax withheld and $24.00 of State Tax withheld. Do I need to amend my taxes so that I can get my tax returns adjusted?

Jonathan M. Gaspar

email reply to:  [email address removed]

[ErnieS0]

TurboTax is waiting for IRS guidance on how they will handle exempt unemployment for people how have already filed tax returns.

The IRS says, "For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time, until the IRS issues additional guidance."

As part of the recently passed American Rescue Plan, the first $10,200 worth of unemployment payments are now tax-free for households with annual incomes less than $150,000. This expanded tax relief begins this year, starting for taxpayers filing returns after January 1, 2020.

If you’d like to be updated when the information becomes available, please sign up here.

Related Resource:

• IRS Statement - American Rescue Plan Act of 2021

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