As discussed in earlier posts, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer). This exclusion is available for taxpayers with adjusted gross income of under $150,000. In its original guidance, the IRS indicated that, when computing income for the purpose of this thresho...
As discussed in earlier posts, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer). For younger taxpayers who are subject to the kiddie tax, unemployment benefits in excess of the $10,200 exclusion received by the child are treated as unearned income for the purpose of the kiddi...
The New York State Budget Director Robert F. Mujica, Jr. announced on March 19, 2021 that New York will be extending the New York State income tax due date to May 17, 2021 to align with the federal due date.
The Commissioner of the IRS announced on March 18, 2021 that the IRS is planning to automatically refund overpayments for taxpayers who received unemployment compensation and who filed their 2020 income tax returns before the enactment of the law that provides a retroactive exclusion of up to $10,200 of unemployment compensation for the 2020 tax year. Under this approach, affected taxpayers will...
The Commissioner of the IRS announced on March 18, 2021 that the extension of the due date for 2020 individual income tax returns and related payments from April 15, 2021 to May 17, 2021 does not apply for the 2020 income tax returns of estates, trusts and corporations, so the due date for those returns remains April 15, 2021. He also reiterated that estimated tax payments for the first quarte...
The IRS indicated that the filing due date for individual tax returns and the due date for making tax payments due for the 2020 tax year is being automatically extended from April 15, 2021 to May 17, 2021. This announcement was contained in IRS New Release IR-2021-59, issued on March 17, 2021. The IRS has indicated that it will provide formal guidance in the coming days. The news release als...
As discussed in our post on March 11, 2021, the American Rescue Plan, which was enacted on March 11, 2021 provides a retroactive exclusion for unemployment benefits received during 2020 (up to $10,200 per taxpayer). The exclusion is available for taxpayers with adjusted gross income of under $150,000. When computing income for the purpose of this threshold, include all unemployment benefits re...
On March 10, 2021, the House of Representatives passed the American Rescue Plan Act of 2021, which had previously been passed by the Senate on March 6, 2021. The President is expected to sign it into law. Retroactive Exclusion of Certain Unemployment Benefits: As discussed in our post on March 9, 2021, the Act contains a provision that retroactively excludes up to $10,200 of unemployment ben...
On Saturday, March 6, 2021, the Senate passed its own version of a bill that contains many tax provisions. The bill differs from the earlier version passed by the House of Representatives, so it will still require another vote in the House before it can be enacted into law. The final provisions are expected to stay the same, but until the House vote, there is always the possibility of delays...
It is looking very likely that a new tax law will be enacted that includes a third round of stimulus/economic impact payments. While the final details of such payments will not be known until/unless the new tax law is enacted, practitioners can begin to plan to help clients maximize the benefits of such payments. So far, the bill that was passed by the House of Representatives on February 27...
