There is No Need to Amend if You Already Filed Your Tax Return.

There is an update regarding tax returns that were filed prior to the IRS deeming the first $10,200 of your 2020 unemployment compensation as non-taxable.

The IRS has stated that you will not need to file an amended 2020 federal income tax return as the IRS will automatically reduce your taxable income by the amount of non-taxable unemployment compensation received. If applicable, you will receive a refund directly from the IRS. They have not released any further clarification on the method or timing of these refunds, except to say that they are handling a considerable back-log, and it will not likely be very soon. The good news here is that you won’t have to file a 2020 federal amendment!

New York State has still not yet issued its ruling on the taxability of 2020 unemployment compensation. While we anticipate an update on this in early April, there may also be an additional delay in their guidance on how they plan to handle the filed returns before the change.

Check back here often or subscribe below to receive updates as we know more.