Yesterday, the IRS issued News Release 2021-71 in which they confirm that most taxpayers who filed their tax returns before the excludable unemployment compensation tax change should not amend returns that were filed before the change.
The IRS has announced that they will automatically recalculate the tax changes and begin refunding money this spring and summer. The IRS will begin in May with taxpayers eligible for the $10,200 exclusion and then move to married-filing-jointly taxpayers who would have been eligible for a $20,400 exclusion.
The IRS noted that some individual may still need to amend their tax returns if they originally did not claim certain credits but would qualify with the change in their income.
The IRS also has a dedicated webpage with details on the exclusion and how it is being calculated.
If you are unsure whether you need to take action, contact your accountant and remember to follow us on LinkedIn to stay up to date on all of our posts.
The IRS noted that some individual may still need to amend their tax returns if they originally did not claim certain credits but would qualify with the change in their income.
The IRS also has a dedicated webpage with details on the exclusion and how it is being calculated.
If you are unsure whether you need to take action, contact your accountant and remember to follow us on LinkedIn to stay up to date on all of our posts.