The IRS has posted guidance about the procedure for reporting unemployment compensation for taxpayers who qualify for the new exclusion of up to $10,200 per taxpayer.
In order to qualify, taxpayers who have modified adjusted gross income of less than $150,000 for either a single or married filing joint federal income tax return.
Here is a link to the IRS explanation on its website. New Exclusion of up to $10,200 of Unemployment Compensation | Internal Revenue Service (irs.gov)
Tax return preparation software providers should have updates issued shortly to incorporate the exclusion.
If you use tax return preparation software, be sure to download the latest updates before processing your income tax returns. If you qualify for the exclusion, check the amount reported for unemployment compensation on your tax return to be sure it’s reduced for the exclusion before filing your federal income tax return.
The IRS didn’t explain a procedure for filing an amended income tax return for taxpayers who already filed their income tax returns and didn’t claim the exclusion.