Did you or members of your household received state Unemployment compensation during 2020? Don’t want to get hit with a surprise Tax Bill thanks to “unexpectedly higher income”?

If reply with “Yes” to both questions… perhaps it’s better wait with filing your 2020 tax returns until dust settles on the Covid relief bill, passed Wednesday by the House of Representatives. President still needs to sign into law. Even once that happens, however, it will take some time for the IRS and Treasury Department, as well as tax preparers and companies, to implement and give guidance on the new rules.

If you already filed for 2020, you will need to send in an amended return but should also wait to do that until the bill is law. The bill waives federal taxes on an individual’s first $10,200 of unemployment benefits collected last year. Married couples who file a joint tax return wouldn’t be taxed on the first $20,400 of unemployment income.

If you need assistance with filing extensions, tax returns or amendments, we are click away to help!

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