The American Rescue Plan Act of 2021 was signed into law on March 11, 2021 and included changes to the law that impact 2020 taxes. As some tax returns have already been filed, there are many questions about how resolve or when to file affected tax returns.
Although we already referenced a previous summary of the tax law changes by the Journal of Accountancy in a prior blog post, another great summary to take a look at is the summary by JD Supra.
If you have specific questions about unemployment being nontaxable, the IRS has recently issued updates on the the topic, New Exclusion of up to $10,200 of Unemployment Compensation. The IRS Commissioner has also stated that those already filed their 2020 tax returns prior to the tax law change should not file an extension, they IRS is hoping to be able to automatically issue refunds.
If you still have questions on whether you are impacted, contact your accountant, and remember to follow us on LinkedIn to stay up to date on all of our posts.
If you have specific questions about unemployment being nontaxable, the IRS has recently issued updates on the the topic, New Exclusion of up to $10,200 of Unemployment Compensation. The IRS Commissioner has also stated that those already filed their 2020 tax returns prior to the tax law change should not file an extension, they IRS is hoping to be able to automatically issue refunds.
If you still have questions on whether you are impacted, contact your accountant, and remember to follow us on LinkedIn to stay up to date on all of our posts.
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