{"id":5718,"date":"2021-08-02T11:17:35","date_gmt":"2021-08-02T16:17:35","guid":{"rendered":"http:\/\/hoorfarlaw.com\/blog\/?p=5718"},"modified":"2021-08-03T09:08:55","modified_gmt":"2021-08-03T14:08:55","slug":"irs-continues-adjustments-to-unemployment-compensation-prepares-another-1-5-million-refunds","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=5718","title":{"rendered":"IRS continues adjustments to unemployment compensation, prepares another 1.5 million refunds"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright size-full is-resized\"><a href=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2017\/03\/tax-refunds.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2017\/03\/tax-refunds.jpg\" alt=\"\" class=\"wp-image-3375\" width=\"214\" height=\"159\" srcset=\"https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2017\/03\/tax-refunds.jpg 412w, https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2017\/03\/tax-refunds-300x224.jpg 300w\" sizes=\"auto, (max-width: 214px) 100vw, 214px\" \/><\/a><\/figure><\/div>\n\n\n\n<p><a href=\"https:\/\/hoorfarlaw.com\/blog\/wp-admin\/edit.php?post_type=post\"><\/a>Last week, the Internal Revenue Service said that another 1.5 million taxpayers will be receiving refunds averaging more than <strong>$1,600<\/strong>. The IRS is adjusting unemployment compensation from previously filed income tax returns as a result of the American Rescue Plan Act of 2021, which was passed in March. It excluded up to <strong>$10,200<\/strong> in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was <strong>under $150,000<\/strong>.<\/p>\n\n\n\n<p>Refunds should be expected soon, as those arriving by direct deposit were set to begin July 28 and refunds by paper check began July 30.<\/p>\n\n\n\n<p>Most taxpayers will <strong>not<\/strong> need to take any extra steps to receive this refund.<\/p>\n\n\n\n<p><strong>How do I know if I should file an amended return?<\/strong><\/p>\n\n\n\n<p>Taxpayers <strong>should<\/strong> file an amended return if they:<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<ul class=\"wp-block-list\"><li>did not submit a Schedule 8812 with the original return to claim the Additional Child Tax Credit and are now eligible for the credit after the unemployment compensation exclusion.<\/li><li>did not submit a Schedule EIC with the original return to claim the Earned Income Tax Credit (with qualifying dependents) and are now eligible for the credit after the unemployment compensation exclusion.<\/li><li>are now eligible for any other credits and\/or deductions not mentioned below. Make sure to include any required forms or schedules.<\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n<p>Taxpayers <strong>do not need to<\/strong> file an amended return if they:<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<ul class=\"wp-block-list\"><li>already filed a tax return and did not claim the unemployment exclusion; the IRS will determine the correct taxable amount of unemployment compensation and tax.<\/li><li>have an adjustment, because of the exclusion, that will result in an increase in any non-refundable or refundable credits reported on the original return.<\/li><li>did not claim the following credits on their tax return but are now eligible when the unemployment exclusion is applied: Recovery Rebate Credit, Earned Income Credit with no qualifying dependents or the Advance Premium Tax Credit. The IRS will calculate the credit and include it in any overpayment.<\/li><li>filed a married filing joint return, live in a community property state, and entered a smaller exclusion amount than entitled on Schedule 1, line 8.<\/li><\/ul>\n<\/div>\n<\/div>\n\n\n\n<p class=\"has-medium-font-size\">If you need assistance filing an amended return or preparing tax forms, feel free to call us at 816-524-4949 or visit our website at <a href=\"http:\/\/hoorfarlaw.com\" data-type=\"URL\" data-id=\"hoorfarlaw.com\">hoorfarlaw.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week, the Internal Revenue Service said that another 1.5 million taxpayers will be receiving refunds averaging more than $1,600. The IRS is adjusting unemployment compensation from previously filed income tax returns as a result of the American Rescue Plan &hellip; <a href=\"https:\/\/hoorfarlaw.com\/blog\/?p=5718\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[16,1074,131],"class_list":["post-5718","post","type-post","status-publish","format-standard","hentry","category-taxation","tag-irs","tag-refunds","tag-taxes"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5718","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5718"}],"version-history":[{"count":11,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5718\/revisions"}],"predecessor-version":[{"id":5768,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/5718\/revisions\/5768"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5718"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5718"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5718"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}