Unemployment Income

[ESGLLC]

I have a client who filed with a 1099-G for unemployment income.  Will he need to file an amended return?

[jkoz]

The IRS has not yet given guidance on this scenario and whether these will be adjusted automatically or need amended. You should wait for final guidance before taking any action. 

We will update that information in our COVID resource center and will also post information in the community as soon as we know. 

For the latest and greatest, check out the links below:

• COVID-19 Resource Center
• American Rescue Plan
• Tax Law and News

[garman22]

possibly.....there are income thresholds

[jkoz]

This is what we know right now:

*  AGI on the return must be under $150,000 (this includes adjustments as they are calculated on the original return)

               (For example, if student loan is not deductible on the return without the adjustment but allowed on the return after the adjustment the AGI for qualifying is based on the ORIGINAL AGI)

*  Income limit is NOT tied to filing status

*  $10,200 per TP or SP on return (so mfj where both have unemployment can deduct up to $20,400)