IRS WILL AUTO RECALCULATE TAXES ON UNEMPLOYMENT

To help taxpayers, the IRS annouced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan.

Here is quick summary on the press release:

Taxpayer who filed prior to change to the handing of the unemployment benefits

  • IRS will AUTO Recalculate
  • IRS will refund any resulting overpayment or apply to outstanding taxes owed
  • The first refunds are expected to be made in May and will continue into the summer.
  • NO need to file an amendment unless…
    • The calculation changes make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.
  • For Taxpayers who have yet to file
    • Our software has been updated to accommodate.
    • Prepare the return as you would normally

CLICK HERE to read the full press release.