Unemployment Compensation Exclusion (UCE)
Tax Update

by: Income Tax Consultants LLC
(718)461-2871

Americans who received unemployment benefits last year (2020) can claim a special new tax break included in the $1.9 trillion American Rescue Plan Act enacted on March 11, 2021.

If your modified adjusted gross income (AGI) is less than $150,000, the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020, which means you don’t have to pay tax on unemployment compensation for up to $10,200. Amounts over $10,200 for each individual are still taxable.

If you are married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. ($20,400 Combined)

This currently applies to Federal only. States do not have to follow the Federal act and if you try to apply this to the state, you may be penalized for underpayment of Taxes (This will include interest and penalty as extra charges). It is better to file state without the exemption and have the state owe you money compared to you owe the state money.

For taxpayers that have not yet filed their 2020 tax return, our software has been updated to reflect the changes to the Form 1040, Schedule 1 - Additional Income and Adjustments to Income and program will automatically include the exclusion.

If you have already filed and completed your return for Tax Year 2020, you DO NOT need to file an amended return. The Internal Revenue Service will automatically refund you the overpayment from approximately July 2021 thru the rest of the summer. The refund will be in the form of a check if you decided not to file with a bank account number or direct deposit if you did. Direct deposit will be much faster than check because the Internal Revenue Service and the Treasury will complete direct deposit first. Checks may come one to two months later after direct deposit.

For more about the American Rescue Plan (ARP) tax credits and benefits, we will continue to post information in our future commentaries.

失業補助金免除(UCE)納稅更新


去年(2020年)獲得失業救濟的美國人可以要求特別的新稅收減免,該減稅方案包括在2021年3月11日頒布的1.9萬億美元的《美國營救計劃法》中。

如果您修改後的調整後總收入(AGI)低於 $150,000,美國營救計劃,已於2021年3月11日生效,允許扣除最高 $10,200的從您2020年給付的失業補償金中,這意味著您不必為最高 $10,200失業金納稅。但每個人超過 $10,200的金額仍需納稅。

如果您已婚,領取失業救濟金的每個配偶都不必為最高 10,200美元的失業救濟金納稅。 (合計 $20,400)

目前僅適用於聯邦政府。州不必遵循聯邦法,如果您嘗試將其應用於州,則可能會因少繳稅款而受到處罰(這將包括利息和罰款作為額外費用)。最好是在沒有豁免的情況下提出州,而與您欠州錢相比,讓州欠您錢。

對於尚未提交2020年納稅申報表的納稅人,我們的軟件已更新,以反映對1040表,附表1-附加收入和收入調整的更改,申報程序將自動扣除該免稅金額。

如果您已經提交並完成了2020納稅年度的申報表,則無需提交經修改的申報表。國稅局將在2021年7月左右至整個夏天的其餘時間自動將多付款項退還給您。如果您申報時沒有使用銀行帳號或直接存款,則將以支票的形式退款。直接存款比支票快得多,因為國稅局和財政部將首先完成直接存款。支票可能會在直接存款後一到兩個月後寄出。

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