IRS TO ISSUE AUTOMATIC UNEMPLOYMENT-RELATED REFUNDS

The IRS has said that it will take steps this spring and summer to automatically correct returns that were filed prior to the American Rescue Plan Act form March 11th which made the first $10,200 of unemployment benefits from 2020 non-taxable to the Federal Government for those taxpayers with an AGI of less than $150,000. ($20,400 for Married Filing Joint).

“Taxpayers do not need to file amended returns unless the calculations make the taxpayers newly eligible for additional federal credits and deductions not already included on the original tax returns.”