Sabko Tax Office
reopened with a new location at
62B West Somerset St.
Raritan, NJ 08869
Unemployment Compensation Changes
The IRS has finally provided guidance on how to handle tax returns that were impacted by the change in Unemployment benefit taxability.
For those returns already filed that are eligible for the unemployment compensation exemption:
The IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.
The IRS can & will adjust returns for those taxpayers who claimed the Earned Income Tax Credit (EITC) and, because the exclusion changed the income level, may now be eligible for an increase in the EITC amount which may result in a larger refund.
The IRS will do these recalculations in two phases:
Starting with those taxpayers eligible for the up to $10,200 exclusion.
Then the IRS will then adjust returns for those married filing jointly taxpayers who are eligible for the up to $20,400 exclusion and others with more complex returns.
The first refunds are expected to be made in May and will continue into the summer.
Amending Tax Returns:
There is no need to amend tax returns already filed unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.