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.
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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.
Please read this very recent news from the IRS:
https://www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021
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.
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