Refund

Jess_l212 — Mon, 10 May 2021 21:47:08 GMT

How do we know if we are receiving a refund since the first $10,200 of unemployment is tax free?

Re: Refund

blueprnts01 — Mon, 10 May 2021 22:18:04 GMT

I got a email about amending your 2020 federal income tax to get it tax free. I tried to contact turbo tax and can't get ahold of anybody to ask about this topic.

Re: Refund

DawnC — Mon, 10 May 2021 23:29:48 GMT

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation of up to $10,200.

If you have already filed your 2020 Form 1040 or 1040-SR, you should not file an amended return. The IRS will automatically refund money to people who already filed their tax return reporting unemployment compensation. See IR-21-71 for more details. @blueprnts01

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.

For example, the IRS can adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund. However, taxpayers would have to file an amended return if they did not originally claim the EITC or other credits but now are eligible because the exclusion changed their income.

These taxpayers may want to review their state tax returns as well. If you are eligible for new credits, you can find the amending instructions here.

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Refund

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