THE WANDERING TAX PRO
Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 45+-year veteran tax professional Robert D Flach.
Friday, March 19, 2021
DO NOT AMEND
It appears, according to IRS Commissioner Chuck Rettig,
that the IRS will automatically process refunds for taxpayers who have already
filed their 2020 income tax returns and claimed the full amount of unemployment
benefits received as taxable income.
As I explained in a previous post (click here) - “The American Rescue Plan . . . exempts from federal
taxable incomeup to $10,200 in unemployment benefits received in 2020 if your “household” modified AGI is less than $150,000.”
“Do not file an amended return at
this time,” Rettig told a congressional panel on Thursday.
“We believe that we will be able to handle this on our own. We believe that we
will be able to automatically issue refunds associated with the $10,200.”
that the IRS would soon officially release details for taxpayers about how to