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Post Date:  3/16/2021
Last Updated:  3/16/2021

Summary
Cross References
- www.irs.gov/newsroom/irs-statement-american-rescue-plan-act-of-2021

The IRS has issued a statement on the American Rescue Plan Act of 2021. Taxpayers who have already filed their 2020 tax returns should not file an amended return to take advantage of the $10,200 exclusion for unemployment benefits. The IRS is working on guidance that will be released soon providing details on how taxpayers can take advantage of this provision.

The IRS is also working on guidance to be issued soon on the third round of economic impact payments, the expanded Child Tax Credit (including the new advance payments), and other tax provisions that are contained in the new law.

The IRS is also working on worksheets for paper files and the software industry to update current tax software so that taxpayers can determine how to report their unemployment income on their 2020 tax return.

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