The IRS has issued new guidance on how individuals can collect the tax break for unemployment which was included in the most-recent COVID relief bill.
Under the law most people are given a pass on paying federal taxes on the first $10,200 of unemployment benefits received.
Here’s how it works: There won’t be any additional work required out of the individual.
The IRS will recalculate benefits and income for those who have already filed. That means an amendment will not be necessary.
The state has not yet decided whether they will honor a similar credit for those who received unemployment benefits in 2020.
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