Unemployment Exclusion: Note for Some

[jc_penny]

A few of us [prescient ones] withdrew a large chunk of our tax-deferred accounts in 2020 to avoid the pending tax increases.  While I did not earn even close to $150k last year, my AGI stands at $151k as a result.  As a 2020 Census Employee I was eligible for UIC/PUA and received some while we waited for the DOC to get a green light.  Knowing this, and the law, I will be making adjustments [IRA deposits] to get my AGI back below $150k in order to take advantage of this new exemption.

Regardless the timing of the process and/or forms, anyone with AGI close to $150k needs to examine their return for ways to reduce their AGI:  An amended return cannot amend your IRA exclusion.

[xmasbaby0]

https://ttlc.intuit.com/community/tax-topics/help/how-will-the-stimulus-package-impact-me/01/1393859...

You are among millions who have now been affected by a mid-tax season change in the tax law.  Patience will be necessary.

TurboTax will update the software for the unemployment but there is no timeline yet.

  If you have not e-filed yet—-wait.   And if you already e-filed and want to amend for this—WAIT.

https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

Please read this very recent news from the IRS:

https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

[jc_penny]

I am patient...and will wait.  But a few of us are at the cusp to earn the exemption.  

Even if I have to file an amended return to earn the exemption, I cannot adjust my 2020 AGI after 15 Apr 21.

That's my point.