Federal Tax

Unemployment Benefits Law Change

Did you collect unemployment benefits in 2020? If so, the IRS is reminding you of an important law change that may affect you. On March 11, 2021, the American Rescue Plan Act excluded unemployment benefits received in 2020 from income (up to $10,200 per individual), a move which could reduce your tax bill. But suppose you filed your 2020 tax return before that law passed. If so, there’s no need to file an amended return, says the IRS. The tax agency will automatically recalculate your tax bill and refund money due you based on this change. However, in some cases, it may be more beneficial to file an amended return. Contact us with questions. © 2021