The IRS on Friday updated frequently asked questions for the 2020 unemployment compensation exclusion in Fact Sheet 2022-39.
The updates are:
- Topic D: Amended Return (Form 1040-X): Combined question 1 and 2, removed question 3 and renumbered question 4
- Topic E: Impact to Income, Credits, and Deductions: Question 2
- Topic G: Receiving a Refund, Letter, or Notice: Questions 2, 3, 5, 8 and 9
- Topic H: Finding the Unemployment Compensation Amount: Question 2
The American Rescue Plan Act of 2021, signed into law on March 11, 2021, provided relief to individuals who received unemployment compensation in 2020. It included a provision that makes the first $10,200 of unemployment nontaxable for each taxpayer who made less than $150,000 in 2020. In the case of married individuals filing a joint tax return, this exclusion of up to $10,200 applies to each spouse.
More information about reliance is available.
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