![]() ![]() The IRS did not correct your account as part of the automatic correction process. You already filed your 2020 tax return without claiming the exclusion. This provision is retroactive only to tax year 2020(the taxes you file in 2021), helping millions of unemployed save on their taxes. You are eligible to exclude up to 10,200 in unemployment compensation (up to 10,200 per spouse if you and your spouse file a joint return) that you reported on your 2020 return. ![]() The bill also made the first $10,200 of unemployment income tax-free for households with income less than $150,000. Under the American Rescue Plan signed into law on March 11, 2021, unemployment payments increased by $300 per week and the benefits were extended through September 6, 2021. The second provision also covered part-time workers, self-employed, and others that had fallen into a gray area for unemployment benefits. The first stimulus that was passed in March banned benefits for the mixed earner category of workers. Certain workers who had at least $5,000 per year in self-employment income, but were disqualified from receiving Pandemic Unemployment Assistance because they also had an employer could have been eligible for the additional $100 per week in unemployment benefits. If you earned your income both as an employee and a freelancer or a contractor (doing side gig work for example) you fall into this “mixed earners” category. The bill also afforded an additional $100 a week to earners who had a mix of income types. Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, the second relief plan to expand unemployment, unemployment benefits were extended by issuing $300 a week for 11 weeks until March 14, 2021. ![]() Expanded unemployment benefits under the CARES Act included an additional $600 per week in unemployment until Jand allowed self-employed to file for unemployment. Expanded unemployment under the CARES Act created a new federal unemployment program that provided funding to the states called the Pandemic Unemployment Assistance (PUA), which gave unemployed additional unemployment benefits until Jand could also be applied for through the state where you worked. ![]()
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