Question

The 2020 $10,200 unemployment tax exemption

Forum|Forum|4 years ago
September 9, 2021
1 reply
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At the time I filed my 2020 1040 tax return the 10,200 exemption was not offered. Should I amend my 2020 return to reflect the exemption which would change my AGI?

David_EA

Hello @Lulu70! The IRS is asking that people DO NOT amend their tax returns to reflect the change. Per the IRS, "For those who have already filed, the IRS will do these recalculations in two phases, starting with those taxpayers eligible for the up to $10,200 exclusion. The IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.

There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return." You can read more about it on the IRS website: https://www.irs.gov/newsroom/irs-to-recalculate-taxes-on-unemployment-benefits-refunds-to-start-in-may

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