However, this bill only effects 2020 unemployment benefits. If you are receiving unemployment benefits in 2021, they will be considered taxable income. You should consider having taxes withheld from your unemployment checks to reduce the tax burden for 2021.
If you have already filed before the unemployment benefits were excluded, the IRS is asking that you do not file an amended return at this time. They will be issuing additional guidance in the coming weeks.
For the latest updates on the exclusion of unemployment compensation, visit the IRS website: