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May 1, 2021
Question

Does anyone know how we can see if we will be getting additional money due to unemployment tax break?

  • May 1, 2021
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May 1, 2021

If your modified adjusted gross income (MAGI) is less than $150,000, then you can exclude up to $10,200 of unemployment compensation paid in 2020 from your taxable income. Amounts over $10,200 for each individual are still taxable.

 

You do not need to file an amended return unless the calculations make you newly eligible for additional federal credits and deductions not already included on the original tax return. The IRS will make the correction and issue a refund. Please see IRS to recalculate taxes on unemployment benefits; refunds to start in May for details.

 

If you are unsure if you qualify for any new credits and deductions then you can prepare an amended return without e-filing it and see if you qualify for any new credits and deductions. Please see How to amend a tax return for instructions.

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