GREENSBORO, N.C. — We're less than a month away from Tax Day and get this, the tax forms are still being changed. Here's why, the American Rescue Plan Act, which is the latest COVID relief bill, has a provision that makes the first $10,200 in unemployment benefits nontaxable. That means you won't pay taxes on unemployment income.
The IRS released information on what that means for you:
For those who haven't filed yet, the IRS will provide a worksheet for paper filers and work with software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.
Here's the question: What do you do if you already filed your taxes?
“I know people would like to amend them and get it taxes taken off their unemployment income, but right now we're sorta just waiting on guidance from the IRS,” said Kevin Robinson of Robinson Tax & Accounting Services.
The IRS statement about this goes on to say:
For those who received unemployment benefits last year and have already filed their 2020 tax return, the IRS emphasizes they should not file an amended return at this time until the IRS issues additional guidance.
When is the additional guidance going to come out? We don't know—yet and if you start feeling antsy and want to do something, let me remind you of this from that same IRS statement:
The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.