The American Rescue Plan Act, recently put into effect last week, has brought relief to the American workers, but comes with updates from the Internal Revenue Service (IRS). If you filed your taxes already, please contact your trusted tax preparer for more insight on the information reported here.
Members who received unemployment benefits during the COVID-19 Pandemic are exempt from paying taxes on the first $10,200 in unemployment compensation. While many forget that unemployment benefits are taxable and greatly affect many families across this country, this additional relief will help support those families who cannot afford it.
“The IRS strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time … The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return,” said the IRS.
During a strenuous time like this, when there are many questions to be answered, it is best to reach out to your trusted tax preparer. Ensure you are all set, taken care of, i’s are dotted and t’s are crossed.