The IRS continues to review data received for Veterans Affairs (VA) benefit recipients and expects to determine a payment date and provide more details soon. Currently, the IRS estimates that Economic Impact Payments for VA beneficiaries who do not regularly file tax returns could be disbursed by mid-April. VA beneficiary payment information will be available in the Get My Payment tool at a future date.
Didn’t get the first and second payments? Claim the 2020 Recovery Rebate Credit
For those who didn’t get a first and second Economic Impact Payment or got less than the full amount, they may be eligible to claim the 2020 Recovery Rebate Credit and must file a 2020 tax return even if you don’t usually file a tax return.
Tax deadlines changed
The deadlines for individuals to file and pay most federal income taxes are extended to May 17, 2021. Get details in this announcement.
American Rescue Plan Act of 2021
The IRS is reviewing the tax provisions of the American Rescue Plan Act of 2021, signed into law on March 11, 2021. See the latest IRS statement for more information and continue to check back for updates.
New exclusion of up to $10,200 of unemployment compensation
For people with a modified adjusted gross income (AGI) less than $150,000: the American Rescue Plan enacted on March 11, 2021, excludes from income up to $10,200 of unemployment compensation paid in 2020. People don’t have to pay tax on unemployment compensation of up to $10,200. If married, each spouse receiving unemployment compensation doesn’t have to pay tax on unemployment compensation of up to $10,200. Amounts over $10,200 for each individual are still taxable. If modified AGI is $150,000 or more, people can’t exclude any unemployment compensation.