Posted on 04/05/2021 2:53:45 PM PDT by Libloather
President Biden's $1.9 coronavirus relief package offered a major tax break for millions of Americans who collected unemployment aid last year, but more than a dozen states aren't following suit.
The American Rescue Plan waives federal income taxes on up to $10,200 in 2020 unemployment insurance benefits for individuals who earned less than $150,000. Workers can exclude the aid when calculating their modified adjusted gross income meaning that an individual who earned $140,000 last year but collected $10,200 in jobless aid is still eligible to take advantage of the tax break.
The break applies to this tax-filing season, which began Feb. 12 and ends May 17.
But 13 states will not offer that benefit to out-of-work Americans, according to data published this week by tax preparer H&R Block. The states are: Colorado, Georgia, Hawaii, Idaho, Kentucky, Massachusetts, Minnesota, Mississippi, North Carolina, New York, Rhode Island, South Carolina and West Virginia.
**SNIP**
Alabama, California, Montana, New Jersey, Pennsylvania and Virginia are the only states to completely exempt jobless aid from taxes. Others adopted the Biden administration's rule, including Connecticut, Iowa, Illinois, Kansas, Louisiana, Maine, Michigan, Missouri, North Dakota, Nebraska, New Mexico, Oklahoma, Oregon and Utah.
(Excerpt) Read more at msn.com ...
No mention of those who filed early and may owe even more.
What is the filing deadline this year?
may 15 i believe
Yes, the tax deadline was extended but paying North Carolina taxes after April 15 may cost you more
RALEIGH (WTVD) — Your taxes aren’t due until July 15 this year, but paying them after the normal deadline of April 15 could cost you more money.
https://abc11.com/nc-taxes-2020-state-when-are-due/6092743/
The American Rescue Plan waives federal income taxes on up to $10,200 in 2020 unemployment insurance benefits for individuals who earned less than $150,000.
Good old New York.
What is at question is how the individual states handle their 'SaLT' (State and Local Taxes) returns for this UI payment. They CANNOT disallow this Federal Tax reduction BUT they CAN refuse to follow suit in making the same concession for their returns. There is nothing requiring them to follow this US Congress mandate, this is Federalism at work!
Bona Fides: Enrolled Agent doing taxes 18+ years.
Another error as this 'fix' is not limited to this 'filing season' but to tax returns reporting UI (Unemployment Income) received in Calendar Year 2020 and AGI less than the cut-off limits. Thus a tax return filed with an extension on October 10th of 2021, for tax year 2020, will get the same treatment as one filed on or before 17 May 2021!
May 17
Ok so why hasn’t big mouth Schumer done this for NY.
Yes, since 5/15 is a Saturday. Nearly all states have extended their deadline accordingly (makes sense, for a welcome change).
Send him an email, as I won't lower myself to his level!
I excluded it anyway.
It was a gift. I didn’t ask for it. Not even a very big gift either.
They are way behind as well.
We filed something in Dec of 2020, and it’s still sitting there unprocessed.
We certainly won’t be seeing any COVID relief checks for a while, and they’ll likely cancel the program before we do.
We were Owning some $ due to wife collecting unemployment. Now getting refund. Sweet.
I’m glad it worked out for you.
That doesn’t happen very often.
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