Headquarters of the Internal Revenue Service (IRS) in Washington, DC
Samuel Corum / Bloomberg via Getty Images
Unemployed Americans must wait to file an amended tax return to get a new tax break on unemployment benefits received last year, the IRS said Friday.
The U.S. Rescue Plan of 2021, signed by President Joe Biden on Thursday, waives federal taxes on up to $ 10,200 unemployment benefits for single adults earning less than $ 150,000 a year by 2020. (The ceiling is $ 20,400 for two workers in a couple.)
Amounts in excess of $ 10,200 are still taxable. States may also decide not to present the tax appearance.
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Those who filed a tax return before the $ 1.9 billion Covid relief company became law must wait to file an amended return until the IRS issues additional information, the agency said.
“For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS stresses that they do not currently have to file an amended return until the IRS has issued additional guidance,” the IRS said Friday.
The IRS, according to the agency, received nearly 56 million returns and processed nearly 49 million on March 5th.
About 40 million people received unemployment benefits last year, according to the Century Foundation. The average person received $ 14,000 in assistance.
Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, says a container pattern can put some workers in a difficult place, especially those who have paid a large tax bill on their unemployment benefits. .
New tax instructions
The IRS also issued tax information instructions on Friday for those who have not yet filed a return.
“For those who have not yet filed, the IRS will provide a worksheet for paper files and work with the software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return. said the IRS. .
The tax deadline for 2020 is a month past, on April 15th.