The Internal Revenue Service (IRS) is headquartered in Washington, DC
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Unemployed Americans have to wait to file an amended tax return to get a new tax break on unemployment benefits received by the IRS last year said Friday.
The U.S. Rescue Plan of 2021, signed by President Joe Biden on Thursday, waives federal taxes up to $ 10,200 unemployment benefits for single adults who earned less than $ 150,000 a year by 2020. (The ceiling is $ 20,400 for two workers in a married couple.)
Amounts in excess of $ 10,200 are still taxable. States may also decide not to present the tax break.
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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 should not currently file an amended return until the IRS provides 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 to the Century Foundation. The average person received $ 14,000 in assistance.
Janet Holtzblatt, a senior contributor to the Urban-Brookings Tax Policy Center, says Janet Holtzblatt, a senior tax associate at Urban-Brookings Tax Policy, can put some employees in a difficult position, especially those who have a large tax bill on their unemployment benefits paid. .
The IRS also released on Friday tax filing instructions for those who have not yet submitted 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 the current tax software so taxpayers can determine how to report their unemployment income on their 2020 tax return. , “the IRS said. .
The tax deadline for 2020 is a month past, on April 15th.