Make sure to consult with a tax professional before filing the amended return if you have any questions or are unclear about the process. Those amending their income to remove unemployment payments, for instance, would focus on lines 1 through 23.
In either case, the IRS recalculated those returns applying the exclusion of up to 10,200 of unemployment benefits paid in 2020, if the taxpayer's modified adjusted gross income was less than 150,000.
The American Rescue Plan Act allows eligible taxpayers to exclude up to 10,200 (up to 10,200 for each spouse if married filing jointly) from their gross income, which will likely lower the tax liability on their 2020 tax return. You’ll need to complete columns A, B and C for the lines that relate to the changes you’re making.Įnter the original amount you reported in column A, the change in column B and the corrected amount in column C. By that date, some taxpayers had already filed 2020 tax returns including the unemployment benefits, or did so afterward. Will I receive a 10,200 refund (updated March 23, 2022) A1. The IRS has made it possible this year to file the amended return electronically as well as by mail.įind: What Are the 2020-2021 Federal Tax Brackets and Tax Rates? When the time comes to file an amended return, taxpayers can do so online using IRS Form 1040-X. “It’s in everyone’s interest to get this sorted quickly,” he told MarketWatch. The Motley Fool 0:00 1:00 The 1.9 trillion American Rescue Plan is perhaps best known for putting 1,400 stimulus checks in Americans bank accounts.
He said it also allows tax software companies to update their systems based on the tax law change.
#IRS 10200 UNEMPLOYMENT TAX BREAK UPDATE HOW TO#
Robert Kerr, a Washington, D.C.-based IRS enrolled agent and tax consultant said waiting can give the IRS time to figure out how to handle these returns, MarketWatch reported. IRS tax refunds to start in May for 10,200 unemployment tax break: Here's what you need to know Jessica Menton USA TODAY 0:00 1:00 The Internal Revenue Service will begin refunding. Filing an amended return is not a difficult process, but tax experts have advised people to wait a bit longer to file the amended return in case the IRS finds a way to make the adjustments automatically.
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