Refunds for Unemployment Exclusion & IRA Contribution Due Date
IRS Refunds for Unemployment Exclusion
On March 31, 2021, the IRS announced that it will begin sending refunds to taxpayers who received unemployment benefits and are eligible for the exclusion on up to $10,200 of benefits but who filed their tax return before the recent changes made by the American Rescue Plan.
They indicated that these refunds will occur in the spring and summer, starting in May 2021.
They explained that for taxpayers who already have filed and figured their tax based on the full amount of unemployment compensation, the IRS will determine the correct taxable amount of unemployment compensation and tax. Any resulting overpayment of tax will be either refunded or applied to other outstanding taxes owed.
The IRS also indicated that it will first process refunds for taxpayers who are eligible for the up to $10,200 exclusion. It will then process refunds for married couples who each received unemployment compensation where the couple can exclude up to a combined $20,400 (but not more than $10,200 for each spouse).
IRA Contribution Due Date
The IRS announced that the due date to contribute to an IRA for the 2020 tax year is May 17, 2021, matching the filing due date.
The later due date also applies for contributions for health savings accounts.
The due date for making first quarter estimated taxes for the 2021 tax year remains April 15, 2021.
Source: M + O = CPE