IRS Provides American Rescue Plan Guidance: Do Not File Amended Returns
The IRS is reviewing implementation plans for the newly enacted American Rescue Plan Act. Additional information about the new round of economic impact payments, expanded child tax credit, including advance payments and other tax provisions will be made available as soon as possible.
The IRS will provide taxpayers with additional guidance on those provisions that could affect their 2020 tax return.
The IRS strongly urges taxpayers not to file amended returns related to new legislative provisions or take other unnecessary steps at this time.
Unemployment benefits and 2020 already filed? Do not file amendment
For those who received unemployment benefits in 2020 and have already filed their 2020 tax return, the IRS emphasizes to not file an amended return until the IRS issues additional guidance.
The American Rescue Plan Act of 2021 allows taxpayers to exempt up to $10,200 of unemployment benefits in 2020
Also, the IRS notified the general public that the third economic impact payment will begin to be deposited on the week of March 15. Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of these payments will be by direct deposit.
No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020.
"Even though the tax season is in full swing, IRS employees again worked around the clock to quickly deliver help to millions of Americans struggling to cope with this historic pandemic," said IRS Commissioner Chuck Rettig. "The payments will be delivered automatically to taxpayers even as the IRS continues delivering regular tax refunds."