IRS will begin issuing refunds for the unemployment benefits break in May. Last month’s stimulus law provides that up to $10,200 of unemployment benefits received in 2020 are nontaxable for taxpayers with AGIs of less than $150,000. In general, individuals who filed their 2020 Form 1040 before the law was enacted needn’t amend it to claim the break. IRS will adjust their tax and send any refunds in late spring and summer. Some people may want to file an amended return if the exclusion makes them eligible for the earned income credit or other credits that they didn’t claim on their originally filed return. That’s because the Service can adjust credits claimed on the original return but can’t give filers new credits.

Refunds for the Unemployment Benefits

by | Apr 20, 2021 | AGI, IRS, TallyTaxMan | 0 comments