Is it possible to claim the $10,200 Unemployment Tax Exclusion that was in act in 2020 if I received benefits in 2021 that I was supposed to receive in 2020?
I was supposed to get the benefits in 2020 (claimed PUA from March to September 2020) but due to a wrong decision from the Department of Labor I had to wait until summer 2021 to receive those benefits. Now they are part of my 2021 income and are on my 2021's 1099-g. Any opinion or advice is very appreciated, particularly on how to claim the Tax Exclusion on TurboTax, if this is an option. Thank you.
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Sorry Charlie ... but there is no option for you ... the unemployment received in 2021 is taxed on the 2021 return UNLESS congress changes their minds again later and make the law change retroactive.
Sorry----the exclusion of the first $10,200 of unemployment from federal tax was for unemployment RECEIVED in 2020 and entered on a 2020 tax return. There has been no extension of that for unemployment received in 2021. Since you did not receive it until 2021 it goes on your 2021 tax return---unless your state issues a corrected 2020 1099G and you can put it on an amended 2020 tax return.
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