![]() ![]() A special rule is added that treats a taxpayer who has received, or has been approved to receive unemployment compensation for any week beginning during 2021 as an applicable taxpayer.Taxpayers who have received too much in advance premium tax credits in 2020 will not have to repay the excess amount.Expands the Premium Tax Credit for 20 by changing the applicable percentage amounts.Premium Tax Credit (Related to Health Insurance).Extends pandemic unemployment benefits for gig workers and self-employed individuals.Extends weekly federal benefit of $300 a week through September 6, 2021.If you have already filed for 2020, you will need to file an amended return.The first $10,200 in unemployment benefits for taxpayers earning less than $150,000 per year is now tax-free effective for the 2020 tax year.Advance payments of the credits will be sent as economic impact payment checks.Eligible taxpayers will also receive $1,400 for each dependent.Married taxpayers filing jointly with AGI up to $150,000 will receive $2,800 Taxpayers with adjusted gross income (AGI) under $75,000 will receive $1,400 direct payments.Recovery Rebate Credits/Stimulus Checks.We are here to help!Ī summary of key provisions from the final bill is as follows: We encourage you to reach out our professionals for questions about these provisions. Click here to read the full text of the law. The $1.9 trillion coronavirus relief bill includes several different provisions such as $1,400 stimulus checks for individuals, extended unemployment benefits, and aid for small businesses and not-for-profits. ![]() Taxpayers who filed electronically on or after March 15 but did not include the unemployment exclusion when calculating their AGI were required to file an amended return to adjust their AGI.Last Thursday, President Joe Biden signed the American Rescue Plan Act into law. “This does not include the time and cost that taxpayers would have incurred while filing their own amended returns or hiring a professional.”īy the end of July, IDOR plans to notify an estimated 3,300 taxpayers who filed paper tax returns prior to the implementation of the federal unemployment exclusion of the need to file amended returns to qualify for any possible refunds.įor taxpayers who filed electronically on or after March 15 and included the unemployment exclusion on their federal and state individual income tax returns, no additional filing changes were required. “By auto adjusting the refunds, we estimate having saved close to $1.5 million given the amount of time and the workforce that would have been required to process the thousands of amended returns,” said IDOR Director David Harris. ![]() Illinois was the second state to recalculate electronically filed 2020 individual income tax returns and notify taxpayers who filed before Maof the systemic adjustment of their AGI. You can read more from the announcement below. “I’m proud Illinois was one of the few states in the country to automatically adjust these refunds, giving residents faster access to funds as we continue to recover from the economic impact of the COVID-19 pandemic.” “Thanks to the leadership of the Biden-Harris administration, hundreds of thousands of Illinois taxpayers who received unemployment benefits in 2020 are receiving additional money at a time when people need it most,” Governor JB Pritzker said. The provision was enacted after tax filing season opened on February 12, 2021. The American Rescue Plan Act (ARPA) of 2021 included a retroactive provision making the first $10,200 per taxpayer (up to $20,400 married, filing jointly) of unemployment benefits nontaxable for returns with a modified Adjusted Gross Income (AGI) of less than $150,000. Officials announced this was done prior to a newly enacted federal unemployment tax exemption. (KWQC) - Illinois Governor JB Pritzker on Thursday announced the Illinois Department of Revenue has issued automatic refunds to nearly 350,000 eligible taxpayers who filed their 2020 Illinois individual tax returns electronically. ![]()
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