10,200 law

[rlmicke]

When did the 10,200 exclusion law go into effect?  If I filed before that happened when will I be getting a refund.  How far behind is the IRS with this?

[Sunny_Tax_Expert]

Hi rlmicke,

The American Rescue Plan Act of 2021, which became law in March of 2021, excludes up to 10,200 in 2020 unemployment compensation from taxable income calculations.  

For taxpayers who overpaid, or filed before the law passed: the IRS will either refund the overpayment or apply it to other outstanding taxes or other federal or state debts owed.

The IRS began a 4th round of refunds related to the unemployment compensation exclusion provision on July 28th.  Unfortunately, only the IRS can answer how much progress they've made working through the refund backlog.