Unemployment and Premium Tax Credit – ARP Act

The American Rescue Plan Act of 2021 makes a portion of unemployment compensation non-taxable for certain filers and eliminates repayment of excess funds received through the Advance Premium Tax Credit.

We ask for your patience while we work closely with the IRS and state taxing authorities to implement any necessary changes.

We do not recommend postponing filing your tax return. Our software will very soon be updated with the ability to report the first $10,200 of the 2020 unemployment benefits as non-taxable. It also appears likely that the Treasury will make direct reimbursements. For those who have already filed or might be due to compensation for one of those other features, amended returns should not be necessary – and waiting to file will not help.

We expect the IRS to issue official guidance on these items in the near future. We will advise once this happens.

In another subject regarding the new stimulus payments, we have no way of knowing when the IRS will be issuing those payments. Therefore, be patient and you will receive the funds.