Unemployment Income Exclusion Re-Calculation

The IRS is still in the process of re-calculating and adjusting any refunds or balances due on returns filed prior to the unemployment income exclusion. The IRS has started sending CP14 Notices requesting payment of the remaining tax that would have been due prior to the exclusion. Taxpayers do not need to pay the remaining balance of the tax they would have owed prior to the exclusion, and should not file amended returns.

For more information, see the IRS FAQ for 2020 Unemployment Compensation Exclusion Topic G: Receiving a Refund, Letter, or Notice.