Technical topics regarding tax preparation.
5-Mar-2021 7:51pm
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Senate just passed their COVID bill which includes that the first $10,200 of unemployment benefits will be Federal tax free for 2020.
A little editing means I didn't screw it up!
Last edited by
skassel on 6-Mar-2021 3:22pm, edited 1 time in total.
Steve Kassel, EA
5-Mar-2021 8:01pm
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Are you sure it is for 2021? I've been seeing elsewhere that it is retroactive to 2020.
5-Mar-2021 8:15pm
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(b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2019.
6-Mar-2021 8:38am
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Good for a couple of my clients, PITA for me.
Can't seem to get much out the door this year, between late fed and state changes.
6-Mar-2021 9:10am
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I thought UI benefits were only exempt (to $10,200) for payments received in 2020. Did something change?
6-Mar-2021 9:30am
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Can federal legislation change how states handle it? Probably can, but it would be taxable State. Really surprised that they would do '21 and not '20.
6-Mar-2021 9:46am
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What I just read from "make It" yesterday the Senate has agreed to reduce the federal UC package from $400 to $300, but added language that would have a waiver income taxes for the first $10,200 of unemployment insurance benefits received in 2020. (Published Friday March 5, 2021 12:38 PM EST). I think it is out of the Senate with that, but still not to THE DESK..
6-Mar-2021 10:08am
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Immediately preceding the excerpt in #3 is
‘‘(c) SPECIAL RULE FOR 2020.—In the case of any taxable year beginning in 2020, gross income shall not in- clude so much of the unemployment compensation received by an individual as does not exceed $10,200.’’.
6-Mar-2021 1:34pm
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Actually , now the Bill goes back to the House since there were changes made to the House bill in order to get "something" passed in the Senate. Perhaps the House will not pass the Senate version because of changes to the Unemployment benefits and/or a lack of minimum wage provisions.
So there is no change yet.
Maybe in early April!!!!
6-Mar-2021 1:37pm
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MWPXYZ wrote:Actually , now the Bill goes back to the House since there were changes made to the House bill in order to get "something" passed in the Senate. Perhaps the House will not pass the Senate version because of changes to the Unemployment benefits and/or a lack of minimum wage provisions.
So there is no change yet.
Maybe in early April!!!!
It will go straight to a House vote and be on the POTUS desk by Friday.
6-Mar-2021 1:46pm
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Congress wants to get this done before the current add'l unemployment runs out on March 14.
6-Mar-2021 2:33pm
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So we'd be amending 1040s for 2020 that had unemployment earnings reported? Not more work.......
6-Mar-2021 2:51pm
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so many messy things, plus the late opening, IRS shall give us extra two weeks .
6-Mar-2021 4:52pm
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RosyinOregon wrote:so many messy things, plus the late opening, IRS shall give us extra two weeks .
Umm, I'm going on vacation. Taxes can wait until May.
6-Mar-2021 5:26pm
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Is there any chance the IRS will tell us they will correct all returns already filed so we will not have to do amended returns?
6-Mar-2021 5:29pm
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Is there any chance the IRS will tell us they will correct all returns already filed so we will not have to do amended returns?
No emoji exists that conveys the contempt I have for Congress.
Retired, no salvage value.
6-Mar-2021 5:57pm
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MWPXYZ wrote:Actually , now the Bill goes back to the House since there were changes made to the House bill in order to get "something" passed in the Senate. Perhaps the House will not pass the Senate version because of changes to the Unemployment benefits and/or a lack of minimum wage provisions.
So there is no change yet.
Maybe in early April!!!!
I am sorry. Are you saying that the $10,200 UI exclusion is still not a done deal yet?
6-Mar-2021 6:17pm
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6-Mar-2021 10:27pm
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I am curious as to how much you are going to charge to do amended returns if you don’t mind sharing. I was thinking at least $100 to do an amended return. Also was going to tell clients I am not going to do them until after April 15.
7-Mar-2021 1:03am
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$150 to amend fed & state
Dave
Taxation is the price we pay for failing to build a civilized society. ~ Mark Skousen
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