We will add IRS guidance here as it becomes available. For now, you should not file federal or state amendments until further guidance is provided. Earned Income Credit) or deduction that was not already claimed on your return. There may be some situations where an amendment may be needed, such as if the unemployment income exclusion makes you eligible for a credit (ex. This adjustment means previously filed returns do not need to be amended for the unemployment exclusion. About 30 days after receiving your refund you’ll receive a letter from the IRS with details about the unemployment adjustment. The IRS will start with most taxpayers who are eligible for the up to $10,200 unemployment compensation exclusion first, then look to Married Filing Jointly filers who are eligible to exclude up to $20,400. These will start going out in June and continue through the summer. What you should do nowĪlready filed? The IRS announced it will automatically issue refunds for the unemployment tax break.
Whether you’re wondering how to claim the unemployment tax break if you already filed or are getting ready to do so, Block has your back. What’s probably unclear is exactly how to claim the unemployment tax break.Īs the details for your federal and state taxes emerge, know this. You’ve probably heard how the latest relief bill also gives those with unemployment income a break on taxes. Editor’s Note: This article was originally published on March 22, 2021.