I received a reimbursement from the IRS for the adjustment that was made for 2020 for those that filed unemployment since I had filed prior to the change that was made. How does it work with the state taxes because it seemed like I would owe some $ back to them? I live in CA. Do I receive some sort of notice?
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1 Replies
KrenaS
Employee Tax Expert
Sep 9, 2021 12:18:05 PM
California is one of a handful of states that does not tax unemployment income, even before the American Rescue Plan Act was passed. Therefore, there should be no adjustments to your 2020 CA return for the federal unemployment exclusion.