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We already filed our taxes and payed. With the new law, it looks like the first $10,200 of unemployment is now not taxable. How is that fixed?

We had more than that in unemployment.
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2 Replies

We already filed our taxes and payed. With the new law, it looks like the first $10,200 of unemployment is now not taxable. How is that fixed?

The law has not even been signed yet.

 

It can take weeks to several months or more for the changes to be made to tax software.   First the IRS has to change its forms.   The tax software has to be changed; the IRS has to test and approve of the software.   Do not expect changes in the software to happen quickly.   TurboTax may have more information in the near future AFTER the bill is signed into law, and some more details emerge about how Congress and the IRS will implement the changes.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DMarkM1
Employee Tax Expert

We already filed our taxes and payed. With the new law, it looks like the first $10,200 of unemployment is now not taxable. How is that fixed?

There is no new tax law yet.  Yes, there is a bill in the House of Representatives that has language concerning a tax break on the first $10,200 of 2020 unemployment benefits.  

 

It is still a bill until both Houses of Congress approve the same version and then the President signs it. 

 

Once that happens it will be up to the IRS to determine and publish implementation guidance.  It could mean amendments for those who already filed or the IRS could pull the already filed returns and make the corrections and refunds or some combination of those or something in between.

 

We don't know yet.  

 

 

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