Last week, the IRS said it is reviewing the provisions of the American Rescue Act and will issue guidance to tax preparers and taxpayers. Some of those tax forms were based on fraudulent claims for unemployment benefits.įor now, tax experts say the best advice is to sit tight before filing a new or amended return, and the IRS said Wednesday it was extending the deadline to file 2020 returns to May 17. The Ohio Department of Job and Family Services, which administers Ohio's unemployment program, sent out 1.7 million 1099-G tax forms in January that show how much recipients received in unemployment benefits and how much income to declare when preparing 2020 tax returns. Ohio's unemployment rate hit a record 16.4% last April. The pandemic has caused massive unemployment. Ohio intends to follow suit, but it will require a change in state law. Normally, the federal government and Ohio treat unemployment benefits as taxable income, but the American Rescue Plan exempts the first $10,200 of unemployment benefits in 2020 from federal taxes. Even tax preparers are waiting for clarity from the Treasury Department. The nearly 2 million Ohioans who collected unemployment benefits in 2020 are in line for a big break on their federal taxes under the $1.9 trillion relief plan signed into law last week.īut, like much of the past year, claiming the deduction is confusing, especially for those who already have filed their 2020 tax return.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |