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New tax laws

Bsch4477
Level 3
Level 3

Assuming passage of the new stimulus bill the increase in CTC applies to 2021. But the forgiveness of tax on the first 10K of unemployment income is effective for 2020 returns. Anyone have any idea how this will be implemented?  A lot of amended returns?

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19 Replies 19
IRonMaN
Level 15

Amended returns and a tax season that most likely won't be ending on April 15th.

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
TaxGuyBill
Level 14

And it could result in a bunch of tax preparers storming the Senate.   😂

IRonMaN
Level 15

Hey - you can't say that kinda stuff here.  Let's each open a Parler account and continue this conversation there 😅

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
BobKamman
Level 13

@TaxGuyBill 

Can I deduct my fur hat with horns?

Like, it's a uniform, man.  

But it does confuse people.  Kamman rhymes with salmon, not shaman.  

IRonMaN
Level 15

"then they read it"

Not this time.  Didn't the not so great senator from the great state of Wisconsin require them to read the bill to the Senate?  I'm sure he and all of the senior citizens in the Senate skipped their naps and listened to every word so that they could make a well informed vote on the bill.

Barber! Why didn't I think of this before? Getting paid to give out bad tax advice - need I say more? I've run with scissors for years so it is a natural fit.
sjrcpa
Level 15

They said it took 11 hours and some people were dozing.


ex-AllStar
clr600
Level 7

Where in the new bill do you see the unemployment forgiveness

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BobKamman
Level 13

@clr600 

You have to wait a day or two until the ink dries.  First they vote on it, then they read it.  

sjrcpa
Level 15
BobKamman
Level 13

I think that goes back to the December appropriations bill.  It's not what was added Friday night / Saturday morning because it doesn't have the language about phase-out for incomes over $150K.  

sjrcpa
Level 15

Oh. Sorry about that. Guess I haven't seen the real language.

But I think this is the amendment for the $10,200 tax free 2020 unemployment.


ex-AllStar
BobKamman
Level 13

It will show up here:

https://www.congress.gov/amendment/117th-congress/senate-amendment/1378

But even that may not be final, because there was a "manager's amendment" adopted by voice vote at the very end -- supposedly nothing that made major changes, just clarified language, but we don't really know until the final engrossed version is printed and sent back to the House.  And the people doing that have not had much sleep in the last couple nights.  

gma
Level 2

Does this $10,200 exemption mean we actually have to amend everyone who had unemployment under 150K.  This is going to be ridiculous.  We do need an extension on time for people to file.  I have about 80 or so I haven't efiled yet.  At least 20% have unemployment.   

abctax55
Level 15

@gma 

Yes; which is why many/most of us have held those returns in anticipation of this development.  My  WIP is astronomical.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
chasetax
Level 7

let me add my 2 cents--I have a number of people with Obamacare, 1095-A, who have to repay the premium tax credit based on income(!!!) including unemployment--this is a mess

rbynaker
Level 11

@chasetax 

I saw posted in another forum that the bill includes a one-year tax holiday on APTC repayment.  I have not verified it yet so it's currently filed in my brain as "something I read on the Internet that might be true."

abctax55
Level 15

Rick, I *think* that was on the table before they went with the non-taxability of UIC. Perhaps it was dumped in exchange for the UIC exclusion.  Or, maybe not.  That part of my brain you referenced is very jammed with what is likely a lot of useless and/or obsolete info.

Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

If a post answers your question, click on *Accept as solution* for future searches
rbynaker
Level 11

@abctax55 wrote:

Rick, I *think* that was on the table before they went with the non-taxability of UIC. Perhaps it was dumped in exchange for the UIC exclusion.  Or, maybe not.  That part of my brain you referenced is very jammed with what is likely a lot of useless and/or obsolete info.


I don't read these things until they're actually signed (or at least on their way down PA Ave. to be signed.)  But there's no way to block out the noise leading up to it.