The American Rescue Plan Act exempted the first $10,200 of unemployment retroactive to 2020, thus requiring amended returns unless the IRS automatically adjust returns. We must wait for guidance from the government to be issued before software developers can implement it and we can begin processing affected returns.
The state also has measure SB614 SD2 moving quickly that would retroactively exempt unemployment received in 2020 which would also require an amended return. At present, the senate approved it and it is now in the house for review and approval before it can be sent to the governor for signature. If it is signed into law we then would wait for guidance from the government to be issued before software developers can implement it and we can begin processing affected returns.
If any tax is due we highly recommend filing and pay the tax on time to avoid penalties & interest. We can amend the return later to receive a refund, if any, when the guidance is issued and we are able to begin exempting unemployment compensation.
The state also has measure SB614 SD2 moving quickly that would retroactively exempt unemployment received in 2020 which would also require an amended return. At present, the senate approved it and it is now in the house for review and approval before it can be sent to the governor for signature. If it is signed into law we then would wait for guidance from the government to be issued before software developers can implement it and we can begin processing affected returns.
If any tax is due we highly recommend filing and pay the tax on time to avoid penalties & interest. We can amend the return later to receive a refund, if any, when the guidance is issued and we are able to begin exempting unemployment compensation.