Taxpayers who received unemployment income last year and have already filed their 2020 tax returns, should wait before filing an amended return, the IRS says. If you got benefits and filed your 2020 taxes: Wait When Harwood explained the situation to her daughter - who had been expecting a refund to put toward a new car - she "started to cry," Harwood said. Harwood filled out her daughter's tax return and found that she owed $1,000 in federal and state taxes. It was even worse for Harwood's eldest daughter, who worked at a fast-food restaurant before the pandemic pushed her into unemployment. In a bit of good news for confused taxpayers, the IRS extended the tax filing deadline to May 17, after several members of Congress, including House Ways and Means Chairman Richard Neal and Oversight Subcommittee Chairman Bill Pascrell, pushed for a delay. But it also affects an already complex tax season for a tax collection agency that is already behind thanks to understaffing and pandemic-fueled disruptions. The change is good news for many taxpayers, who could save as much as $25 billion, according to the Wall Street Journal. States that currently tax unemployment benefits have yet to decide whether they will allow those state taxes to be waived as well. The law waives federal income taxes on up to $10,200 in unemployment insurance benefits for people who earn under $150,000 a year, potentially saving workers thousands of dollars. The $1.9 trillion American Rescue Plan signed into law last week includes a welcome tax break for unemployed workers. Economics of Biden's $1.9 trillion COVID relief bill 11:06
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