{"id":120867,"date":"2021-04-12T17:20:34","date_gmt":"2021-04-12T17:20:34","guid":{"rendered":"https:\/\/precoinnews.com\/?p=120867"},"modified":"2021-04-12T17:20:34","modified_gmt":"2021-04-12T17:20:34","slug":"some-states-require-amended-tax-returns-for-10200-unemployment-tax-break-refunds","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/business\/some-states-require-amended-tax-returns-for-10200-unemployment-tax-break-refunds\/","title":{"rendered":"Some states require amended tax returns for $10,200 unemployment tax break refunds"},"content":{"rendered":"
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President Joe Biden signed the American Rescue Plan, a $1.9 trillion Covid relief bill, a month into tax season. It gives a federal tax break on up to $10,200 of unemployment benefits from 2020.<\/li>\n
The IRS is issuing refunds automatically to taxpayers who filed a return before the unemployment exclusion was available.<\/li>\n
But many states aren't automatically recalculating taxes. An amended tax return may be necessary. <\/li>\n<\/ul>\n
Some states are requiring workers who received a federal tax break on unemployment benefits to file an amended tax return to get their refund.<\/p>\n
This largely applies to taxpayers who'd filed a federal and state tax return before the American Rescue Plan became law.<\/p>\n
That $1.9 trillion Covid relief measure waived federal tax on up to $10,200 of unemployment benefits collected last year, per person. (The maximum is double for a married couple.)<\/p>\n
More from Personal Finance:<\/strong> Stimulus check less than expected? How the IRS will let you know How to handle an inherited 401(k) or IRA People weigh 'revenge spending' with $1,400 stimulus check<\/p>\n
President Joe Biden signed the bill on March 11 \u2014 about a month into tax season.<\/p>\n
Many people filed their tax returns without claiming the tax break, meaning they likely overpaid their taxes and may be owed a refund.<\/p>\n
The IRS is issuing federal tax refunds automatically starting in May. (It may also apply the funds to other taxes owed.) It's unclear how many people are affected.<\/p>\n
Taxpayers won't have to file an amended federal tax return unless the unemployment tax break makes them newly eligible for tax benefits like the earned income tax credit.<\/p>\n
State taxes<\/h2>\n
Taxpayers may not be so lucky at the state level.<\/p>\n
For one, a dozen states aren't offering the federal tax break on unemployment benefits, meaning workers have state tax liability.<\/p>\n
States that did adopt the federal tax cut may not issue a refund automatically.<\/p>\n