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    Month: March 2021

    IRS Updates Unemployment Exclusion Threshold

    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...

    Kiddie Tax and Unemployment Benefits

    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...

    New York Filing Due Date Moved

    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. 

    No Amendments for Unemployment

    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...