The New Covid Bill & Unemployment Benefits

We and all tax firms are awaiting first, the IRS to adapt the filing forms for this change. THEN all tax firms will be waiting for the software companies to update their tax software to accommodate this last minute change. Along with this “wait” the states will need to decide whether they will follow the IRS change.  Once this happens we will be able amend any client who had unemployment benefits. Our experience is that processing takes 10 to 16 weeks for an amended return and it CAN BE electronically filed by our office. With the heavy workload for the April 15th deadline, we will not be able to turn our attention to amendments till AFTER April 15th.

If your return has already been filed, you owed money and it was direct debited. THIS CANNOT BE CHANGED BY US. If the amendment then deems you a refund those CANNOT be direct deposited.

If you’ve filed your return and you had unemployment benefits but it hasn’t been processed by the IRS, it could be delayed. If you were expecting a refund, that could be delayed as well. However, after factoring in the $10,200 tax waiver, your refund may end up being larger than you originally expected as a result. If you already withheld or paid taxes on your unemployment benefits throughout the year, you may now be entitled to a refund.

If you file your amended return electronically, you can use the “Where’s My Amended Return?” online tool to check the status of your amended return.

Holiday Greetings & Happy New Year!

2020 has been nothing short of incredulous. Safety and health have been at the forefront of all our minds and hearts; financial health as well. This holiday season will have been a very special time for us all closing out this most difficult year. Our hope is these difficult challenges may have brought about innovative ideas that will prosper you to new levels. We are doing our part to keep abreast of the tax changes for 2020, knowing again that many may come down to the wire at year end. Those changes will be affecting businesses as well as the individual stimulus payment reconciliation for individuals.

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