In a hearing before Congress Thursday, IRS chief Charles Rettig responded to questions from lawmakers and tax preparers over whether people who received unemployment benefits but filed their 2020 returns before the March 11th enactment of the coronavirus relief bill should file an amended return in order to get the tax exemption.
The coronavirus relief package signed into law last week includes a provision that waives the first $10,200 in unemployment benefits received for households that earned less than $150,000 in income. That brought up questions over whether people who have already filed their taxes should refile an amended return.
“The people who filed should absolutely not file an amended return,” Rettig said. “We believe that we will be able to handle this on our own. We believe that we will be able to automatically issue refunds associated with the $10,200.”
According to the IRS chief, households who already filed will first receive a refund that will not reflect the $10,200 exemption, and will later receive a second refund based on the exemption.
When the IRS deducts the 10,200 unemployment from your gross income, and that puts you under 150,000 gross, will the IRS give you the rest of the stimulus that you did not get because, it started phasing out at 150,000?
If I understand correctly the new deduction of 10200 on the unemployment is only for gross earners of 150k or less. So for someone over 150k the question Is moot anyway. Correct me if I’m wrong.