They new stimulus bill says up to the first $10000 is non taxable and there are new child tax breaks. Does that affect my 2020 tax return?

[rchgoepp]

The $10000 is for the first $10000 in unemployment.

[Cynthiad66]

Don't know how this affects your return but here is what I know so far.

The Plan also provides a $300 federal increase to weekly unemployment payments and extends two key pandemic unemployment benefits programs through September 6, 2021.

The first $10,200 of unemployment payments are now tax-free for households with an annual income under $150,000.

If you’ve already filed your 2020 return, hang tight. The IRS will provide guidance on how you can claim these additional benefits soon.

Starting in tax year 2021, the Plan increases the Child Tax Credit from $2,000 to:

• $3,600 for each child under 6
• $3,000 for each child age 6–17

It also makes the credit fully refundable, meaning you’ll be eligible to get it even if you don’t owe taxes.

Starting in July, payments for the Credit will be sent in advance so you won’t have to wait to file your 2021 taxes to receive that amount.

You don’t have to do anything to get these payments. The IRS will likely determine eligibility based on your most recent tax filing.

For more information about the American Rescue Plan:

How Will The Third Stimulus Affect Me

[fclark33051]

I have already filed my 2020 taxes and paid.  My unemployment was $24,000 and I paid the full taxes.  Should I amend my return and claim the $10,200 because Turbo Tax had me pay taxes on the full $24,000

[macuser_22]

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@fclark33051 wrote:

I have already filed my 2020 taxes and paid.  My unemployment was $24,000 and I paid the full taxes.  Should I amend my return and claim the $10,200 because Turbo Tax had me pay taxes on the full $24,000

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No.

The $10,200 unemployment retroactive to 2020 was signed into law.

If you already filed - do not amend. See this:
https://ttlc.intuit.com/community/tax-topics/help/how-do-i-get-the-new-unemployment-benefits-if-i-ve...

"If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will refigure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you."