Updated June 23rd, 2021
AMERICAN RESCUE PLAN ACT:
The Act that President Biden signed into law on March 11, 2021 allows for an exclusion of up to $10,200 of unemployment compensation per person for taxpayers whose modified adjusted gross income for 2020 is less than $150,000. For taxpayers who have already filed their 2020 return, the IRS has advised they will automatically process refunds for individuals who paid taxes on their unemployment benefits before Congress passed the law making those payments tax-free. The IRS has announced they will begin issuing the refunds in May.
The MN Dept of Revenue has not conformed with the IRS. We expect them to issue further guidance, although that may not occur until after the extended tax deadline of May 17th, 2021.
Our tax software has been updated to accommodate the current IRS and MN guidelines. We have resumed filing returns for individuals who received unemployment compensation in 2020.
2021 ECONOMIC IMPACT PAYMENT:
For information on your 2021 Economic Impact Payment, please refer to the IRS website: https://www.irs.gov/coronavirus/get-my-payment.
2021 CHILD TAX CREDIT:
For information about the 2021 Child Tax Credit and Advance Child Tax Credit, please refer to the IRS website: https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-frequently-asked-questions.
2020 TAX REFUND STATUS:
To check the status of efiled returns, please refer to the "Track Refund" link on our menu above. Federal refunds have been taking much longer this year, especially for clients who did not receive full First and Second Economic Impact Payments and have filed for a Recovery Rebate Credit on their 2020 tax return.
Thank you for being a valued client! Should you have specific questions or concerns, please email us at email@example.com or call our office at 612-869-4774.