Unemployment Benefits TAX FREE – Do You Need To Amend Your 2020 Tax Return?

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Unemployment Benefits TAX FREE – Do You Need To Amend Your 2020 Tax Return?

IRS Announcement March 19th: The IRS made an announcement not to file an amendment for the changes to the unemployment in 2020. They are working on a way to automatically issue refunds to taxpayers that are eligible for the tax free unemployment benefits for the 2020 tax year.

The American Rescue Plan was recently passed by Congress which included making $10,200 of Unemployment Benefits TAX FREE for taxpayers under a certain income threshold. Unfortunately, a lot of taxpayers already filed their tax return for 2020, so they may need to file an amended 2020 tax return to recoup the taxes that they paid on their unemployment benefits in 2020. In this video, we will go through the income threshold, the extension of the employment benefits for 2021, and more…..

Here are links to our other videos associated with the new American Rescue Plan stimulus package:

$1,400 Stimulus Checks: https://youtu.be/eoLn5rM2_94

New Child Tax Credit With Monthly IRS Payments: https://youtu.be/EAtkGLEJqwA

2021 Child Care Expense Tax Credit: https://youtu.be/QcGdTYKuKTc