IRS offers overview of tax provisions in American Rescue Plan; retroactive tax benefits help many people now preparing 2020 returns<br /><a href="https://www.irs.gov/newsroom/irs-offers-overview-of-tax-provisions-in-american-rescue-plan-retroactive-tax-benefits-help-many-people-now-preparing-2020-returns" target="_blank" rel="nofollow">https://www.irs.gov/newsroom/irs-offers-overview-of-tax-provisions-in-american-rescue-plan-retroactive-tax-benefits-help-many-people-now-preparing-2020-returns</a><br /><a href="https://accountinginstruction.info/" target="_blank" rel="nofollow">https://accountinginstruction.info/</a><br />Taxpayers with children should file returns soon for advance payments of Child Tax Credit <br />IR-2021-106, May 11, 2021<br /><br />WASHINGTON — The Internal Revenue Service today provided an overview of some of the key tax provisions in the American Rescue Plan Act.<br /><br />Several provisions affect the 2020 tax return people are filling out this filing season, including one exempting up to $10,200 in unemployment compensation from tax and another benefiting many people who purchased subsidized health coverage through either federal or state Health Insurance Marketplaces. In addition, the law also includes a third round of Economic Impact Payments, now going out to eligible Americans, that are generally equal to $1,400 per person for most people, as well as several other key changes for tax-year 2021.<br /><br />The best way to keep up with tax law developments is by regularly checking IRS.gov.<br /><br />In the meantime, the IRS urges taxpayers who have already filed their 2020 returns to avoid filing amended returns, refund claims or contacting the IRS about obtaining newly-enacted tax benefits. Taking any of these actions now will not speed up a future refund and may even slow down an existing refund claim. Instead, as noted below, the IRS will automatically provide these benefits to eligible filers.<br /><br />Retroactive changes for 2020<br />Some unemployment compensation not taxed for many<br />For tax year 2020 only, the first $10,200 of unemployment compensation is not taxable for most households. This tax benefit is only available to those whose modified adjusted gross income is below $150,000 during 2020. The same income cap applies to all filing statuses.<br /><br />This means that those eligible who haven't filed a 2020 return yet can subtract the first $10,200 from the total compensation received and only include the difference in their taxable income. For couples where both spouses received unemployment compensation, each spouse can subtract $10,200. Details, including a worksheet, are available at IRS.gov/form1040.<br /><br />For any eligible taxpayer who has already filed and reported their compensation as fully taxable, the IRS is automatically adjusting their return and providing them this tax benefit. Refunds, based on this adjustment, are being issued in May and continuing through the summer.<br /><br />Repayment of excess Advance Premium Tax Credit suspended<br />Taxpayers who purchased health insurance through a federal or state Health Insurance Marketplace won't report an excess repayment or atta<br />...<br /><a href="https://www.youtube.com/watch?v=NqdKq57tq9s" target="_blank" rel="nofollow">https://www.youtube.com/watch?v=NqdKq57tq9s</a>