![]() The IRS also made adjustments to other tax credits in 2020, including the earned income tax credit, recovery rebate tax credit, additional child tax credit, premium tax credit and advanced tax credit. ![]() Keep in mind this is only available for tax year 2020. GET FOX BUSINESS ON THE GO BY CLICKING HERE For tax year 2020, you may qualify to exclude up to 10,200 of your unemployment compensation. You have three years from the date you filed your original return or two years from the date you paid any tax due, whichever is later, to file an amendment and claim a refund. The new tax break is an exclusion workers exclude up to 10,200 in jobless benefits from their 2020 taxable income. You can check the status of your amended return at Where's My Amended Return? The Internal Revenue Service said Friday that it will begin issuing tax refunds this week to eligible taxpayers who filed their 2020 tax returns in February and early March and paid income. ![]() If taxpayers already filed an amended return claiming the exclusion, they should not submit another one. Under the American Rescue Plan signed into law Thursday, the IRS will make the first 10,200 in unemployment benefits from 2020 tax-free. If a taxpayer is eligible for the unemployment benefit exclusion and their refund was not corrected by the IRS, they should file an amended return. But the strategy may have backfired this year, as early filers who paid taxes on their federal unemployment benefits missed out on an important tax break. The average person received $14,000 in benefits. You have the option to withhold federal and state taxes (if applicable) but many taxpayers are either unaware of that option or choose not to have any money withheld.Ībout 40 million people collected jobless aid in 2020, according to The Century Foundation. But the decline was much smaller than in recent weeks. They agreed to trim extended weekly jobless benefits to 300 from 400, but also to continue the federal boost through Sept. The figure released June 18, 2020, from the Labor Department marks the 11th straight weekly decline in applications. If you claimed unemployment last year but filed your taxes before the new 10,200 unemployment tax break was announced, the IRS says you can expect an automatic refund starting in. 1.5M more US workers file for jobless aid
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