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wx_lei
Returning Member

Unemployment Tax Relief for 2021

Hello,

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.  

Thanks

2 Replies
xmasbaby0
Level 15

Unemployment Tax Relief for 2021

Ask Congress.   Maybe they will wait until mid-tax season again and let us know.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
DanielV01
Expert Alumni

Unemployment Tax Relief for 2021

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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