Taxpayers won’t need to refile to get new $10,200 unemployment tax break in 2020
The American Rescue Plan, which was signed into law by President Joe Biden on March 11, made the first $10,200 of unemployment income tax-free for people with adjusted gross income of less than $150,000 in 2020. (The break is $20,400 for two workers in a married couple filing taxes jointly.)
Taxpayers who received unemployment income in 2020 and have already filed their tax return are asked to NOT refile or amend their 2020 return, as the IRS believes it will be able to automatically issue refunds associated with the $10,200.
For assistance around unemployment income received in 2020, contact a ShindelRock tax professional.