Sometimes, tax law is passed so late in the year that it makes changes that are too late to plan for. The American Rescue Plan Act, passed by the US Senate and, as we write this, awaiting action in the House of Representatives, would make the first $10,200 of Unemployment Compensation received in 2020 non-taxable.
Details are very few right now. We’re finding out everything we can and will have a thorough update in tomorrow’s article. Until then, you may want to ask your tax advisor whether it makes sense to hold off filing your return at least until later this week.