This article contains information that is current as of March 25, 2021. The IRS has announced today that returns filed previous to the unemployment compensation exclusion should NOT BE AMENDED at this time:
The American Rescue Plan Act of 2021 excludes from income the first $10,200 in unemployment compensation received in 2020 per taxpayer on their 2020 tax return. The new provision applies to taxpayers with an AGI of less than $150,000. The IRS has recently released a new unemployment compensation exclusion worksheet and updated instructions on how to file 2020 tax returns that contain unemployment income.
TaxSlayer Pro automatically calculates the exclusion based on the AGI entered in the return and generates the Unemployment Compensation Exclusion Worksheet. The exclusion amount calculated on the worksheet in turn flows back to Schedule 1 (Form 1040), line 8. UCE will print on the line next to line 8, identifying the amount as the unemployment compensation exclusion.
Returns filed prior to the release of the Federal Update in TaxSlayer Pro will automatically re-calculate to exclude the non-taxable portion of unemployment income.
