Anyone knows about if the same rule for unemployment exclusion ($10,200) will be applied for tax year of 2021? Since I need to estimate the income for 2021.
Ask Congress. Maybe they will wait until mid-tax season again and let us know.
Officially the answer is no, at least for now. The American Rescue Plan Act of 2021 was very specific in making the 10,200 nontaxable unemployment provision exclusive to tax year 2020. So if you need to estimate your income, plan on all of your unemployment being taxable for next year. Be pleasantly surprised, as many were, if any amount of unemployment is considered not taxable when we file next year also.
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