The IRS and Unemployment Wages
The American Rescue Plan (ARP) that was passed in March has been a great thing for taxpayers. But if you have already filed your 2020 returns that included unemployment wages, it is a waiting game regarding any refund you may get back. I say this because the IRS came out and stated that if you already had filed your 2020 return with unemployment wages, you don't need to file an amended return, but the IRS would issue refunds. But they are they are now saying you may want to file an amended return if after applying the credit, it gave you other federal tax breaks which may reduce the amount of refund you get back. This means that if you were to amend your 2020 tax return, you may be able to maximize the credit back from including your unemployment wages. But you should wait until they start to issue these refunds in May of 2021 to see if you want to amend. Check out the article for more details here: https://www.cnbc.com/2021/04/06/amended-tax-return-may-be-needed-for-some-unemployed-workers-irs-says.html.
If you have had your returns prepared by a Tax Accountant, check with them about filing an amended return. Either way, if you paid to have them prepared or you did them yourself, you have up to three years to file an amended return.
Ok back to the grind-
Your Financial Maven
Samantha M. Besnoff, CPA