If you received unemployment benefits in 2020, a new provision may mean that some of these benefits are no longer taxable.
JOHNSON, Ark. – There are some new announcements from the Internal Revenue Service regarding your taxes for 2020.
If you received unemployment benefits in 2020, a new provision may mean that some of these benefits are no longer taxable. That announcement came on Thursday (March 18) after the announcement that the tax return date would be delayed by a month.
The 2020 tax return deadline should be April 15th, but the IRS has now moved that deadline to May 17th, giving people another month to file their taxes.
After consulting with lawmakers, Governor Asa Hutchinson has extended the deadline for filing state income tax to May 17, 2021 to be in line with the federal extended deadline.
“Posting the state income tax due date is an easy way to help Arkansans in light of the extension of the federal tax deadline,” said Governor Hutchinson. “Our COVID-19 cases, hospitalizations and deaths continue to decline, and Arkansas is recovering rapidly. As the economy and our unemployment rate continue to improve, we will do all we can to help Arkansans recover while in public health Crisis.”
RELATED: Changes to Tax Law Cause IRS to Postpone Income Tax Deadline by One Month
“It’s amazing that people wait until the penultimate day, no matter what month, to do their taxes. It will also give people a little more time to pay taxes due, which some people will benefit from, ”said Susan Reehl, Executive Program Director at WestArk RSVP.
Reehl says for them and the other volunteers who prepare taxes free of charge that they will continue their work. So far, they have filed returns equivalent to $ 2.2 million in refunds.
She says there have been some significant changes since they started preparing taxes this year.
“The Arkansas governor decided they would not have a state unemployment tax, that was a big change and had done a lot of the returns already made, and then this latest change where they will allow the first $ 10,000 Unemployment, ”said Reehl.
If you already filed your 2020 taxes and received unemployment benefits last year, you should wait before filing an amended tax return.
The IRS is expected to issue additional guidance soon.
Senate and House members are calling on the IRS to automatically issue refunds to those affected. If you haven’t filed your 2020 taxes, the IRS tells you to wait for them to provide more guidance.
RELATED: Treasury Department Says Government Tax Cuts Are OK When Separated From COVID Relief Deliveries