IRS Update on the Unemployment Compensation Exclusion

The IRS announced that returns accepted before the unemployment compensation exclusion should NOT be amended: “If you have already filed your 2020 Form 1040 or 1040-SR, there is no need to file an amended return (Form 1040-X) to figure the amount of unemployment compensation to exclude. The IRS will re-figure your taxes using the excluded unemployment compensation amount and adjust your account accordingly. The IRS will send any refund amount directly to you.” That means less work for you – which we think is great news!