Unemployment insurance

[BON]

I have a client in California that had Unemployment insurance payments in 2020.  I have already filed his return for 2020 and now I see Senate Democrats made changes for tax forgiveness up to $10,200 that would apply to 2020 UI benefits.  Would this change apply to my client and if so do I need to file an amended return?

[sjrcpa]

IF it gets signed into law it may affect your client. The vote is supposed to be Mon or Tues then Biden needs to sign.

[BobKamman]

The votes are supposed to be both Monday and Tuesday.  Can't vote on it until agreeing the day before to vote on it.  What's missing from the question is the client's income.  Supposedly the law applies only to those with income less than $150K, but we don't know yet if that's on a joint return, or per taxpayer, or etc. 

[BON]

My client's income is AGI = 14,106 with 7,536 in UI.  He is a full time student and is still claimed as a dependent by his parents. Would this law still apply to my client when signed?  Would I have to file an amended return? 

[sjrcpa · Accepted solution]

Yes and yes