The IRS issues guidance for tax filers who received unemployment compensation last year from changes issued in the American Rescue Plan. Louisiana Revenue Secretary Kimberly Robinson said if you received unemployment last year, you can now exclude $10,200 from your 2020 state and federal taxes.
“You get to go in and exclude that $10,200 for you and also for your spouse, if your spouse also received unemployment compensation last year, as long as your income is less than $150,000,” said Robinson.
If by chance you have already filed your taxes for 2020, Robinson said there is no need to amend them.
“The IRS is going to take care of that for you, and if you’re entitled to a refund, they’ll send that to you automatically,” said Robinson.
The IRS gives detailed information on how to claim the $10,200 on your return. Robinson explains what to do if you have not filed your taxes yet.
“Go ahead and report the unemployment on line seven, if you are filing the return for the first time, then deduct that $10,200 on line eight,” said Robinson.
Robinson said this is an exception for 2020 income taxes because with record unemployment many did not know that they would be taxed on unemployment income.
There are instructions on how to deduct your unemployment on the IRS and Louisiana Department of Revenue’s websites.
https://www.irs.gov/forms-pubs/new-exclusion-of-up-to-10200-of-unemployment-compensation
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