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Unemployed and Already Did Your Taxes? The IRS Says You Don't Need to File an Amended Tax Return


On Friday, the IRS issued guidance that says it strongly urges taxpayers to not file amended returns related to the new legislative provisions or take other unnecessary steps at this time.
About 40 million Americans received unemployment insurance benefits last year, according to a recent report from the left-leaning Century Foundation. That amounts to over $580 billion in benefits that are considered taxable income, including the enhanced $600 and $300 weekly payments. 
Yet researchers estimate that taxes were withheld on only 40% of unemployment payments, thanks to individuals and states failing to withhold the appropriate amounts. 
The IRS said Friday that the agency is currently reviewing the details, including implementation, of the American Rescue Plan. The agency plans to issue additional guidance for Americans who received unemployment benefits in 2020 and already filed their tax returns.  ....

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