I didn't receive my unemployment payments for Jun-Dec 2020 until January 2021. How can I get this changed so I get the $10,200 income exclusion for 2020 unemployment ?

[mckennam]

I was unemployed in 2020 from June -December. However, there were problems with my claim and I didn't receive unemployment payments for June-December 2020 until January 6, 2021. Technically, that income falls under tax year 2021 but shouldn't since those benefits were paid late due to a delay from EDD. We're talking about $14,000.00 which I will have to pay taxes on instead of receiving the $10,200.00 exclusion under the most recent Covid Relief Bill. How can I get this changed so it appears on my 2020 tax return and not 2021? Thank You

[DawnC]

Individuals are cash basis taxpayers, so you are not taxed on the income until you receive it, which was not until 2021, unfortunately.   It is possible they may offer the exclusion in 2021 also since unemployment is part of the 2021 relief bill.  

[Lamirands]

When filing the taxes for 2021 will there be an entry that the unemployment was for 2020 instead of 2021? Or will this be broken down on the 1099 G that we should receive for unemployment for 2021? I had the same thing happen.

[Ray112]

Same thing here regarding 2020 EDD income mixed in with 2021 EDD 1099-G

My concern is that through no fault of ours the EDD, due to many problems of its own, is responsible for not correctly issuing 2020 payments in 2020. An exception for such cases should exist in Turbo Tax.

It makes it a tax penalty instead of a benefit.

As Lamirands said "When filing the taxes for 2021 will there be an entry that the unemployment was for 2020 instead of 2021? Or will this be broken down on the 1099 G that we should receive for unemployment for 2021? I had the same thing happen."

[Vanessa A]

It doesn't matter when the payment was technically for.  As cash basis tax payers, the IRS requires the money to be included in your income in the year it was received.  

This happens even with regular W-2 Employees. If you work the last week of December 2021, but you don't get paid until January 2022, the income is not included on the W-2 for 2021, it wouldn't be reported until you file your 2022 taxes.