Congress just passed an exemption from income taxes on unemployment insurance income at $10,200 for 2020 tax returns. The IRS and all software provider must update their programs. There is no mention if States will conform.
Tax returns that were filled already must be amended to remove the income.
What is best course of action with clients that received unemployment insurance income in 2020?
While we await President Biden's signature on the American Rescue Plan, we are monitoring the situation very closely and will provide updates as they are available.
For the latest and greatest, check out our COVID-19 Resource Center, our Tax Pro Center post about the American Rescue Plan, or the Tax Law and News on the Tax Pro Center.
Of course we will also post any relevant product updates here in the Accountants Community under the News & Updates sections in the community.
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