2020 Unemployment may not be Taxable

As the American Relief Bill makes it way through Congress, there is not a lot of tax provisions in the proposed Bill.

However, the Bill has provisions which make up to $10,200 of unemployment benefits received in 2020 not taxable. This will apply to all taxpayers with modified adjusted gross income of no more that $150,000. It appears this cut off is a cliff test and is the same for both married and single taxpayers.

This is a late year provision, so if the situation applies you may want to hold off filing your return until the final Bill is passed. If you have already filed, you will have to amend your return to obtain a refund.

Please let us know if you have any questions regarding this provision or any proposed provisions in the new Bill.

This entry was posted in Blog. Bookmark the permalink.

Comments are closed.