New Thread: IRS Changes Its Mind on $150K Cap for Unemployment Exclusion

[BobKamman]

This is the CNBC report on today’s news, for those who don’t trust IRS.gov:

The IRS issued guidance Tuesday on a new unemployment tax break that makes more people eligible for the benefit.

The American Rescue Plan waives federal tax on up to $10,200 of unemployment benefits collected last year, per person.

But the $1.9 trillion Covid relief measure, which President Joe Biden signed almost two weeks ago, limited the tax cut to people who earned less than $150,000 in 2020. That threshold is the same regardless of filing status like single or married.

Until today, the IRS signaled that taxpayers had to count unemployment benefits as part of their 2020 income when determining if they qualify for the tax break.

The federal agency said in Tuesday’s guidance that workers can exclude jobless benefits from their calculation of modified adjusted gross income, the official barometer for eligibility.

The rule change means more people will fall below the $150,000 income limit. . . .

The IRS didn’t immediately return a request for comment.

https://www.cnbc.com/2021/03/23/10200-unemployment-tax-break-irs-makes-more-people-eligible.html 

[abctax55]

M y     H e a d     H u r t s        ......         😓

My whack-a-mole analogy is even more appropriate.

I've been checking my data base this afternoon for this; no one impacted.   Yet....