Hi and welcome back to the tax implications podcast with Sam Hicks

This is your short form podcast covering the items that affect your bottom line

Thank you for tuning in. Today I’ll be discussing a current issue revolving around the taxability of unemployment compensation AND refunds that should be issued by the government for previously filed taxes.

For those who have already filed 2020 returns, IRS has announced that it will automatically recalculate taxable income (excluding any unemployment compensation eligible for the exclusion) and refund any overpayment.

It's expected that the IRS will issue incorrect refunds for many married couples in community property states, understating the amount of the refund.

This is why it is highly recommended, that if you received unemployment compensation in 2020 and you’re a married resident of Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington and Wisconsin; you should review your tax filing to see if more of your unemployment income can be excluded, and if the IRS is truly providing you with the refund you qualify for.

You should consult with experienced tax and legal professionals before making any decisions for yourself.

Thank you for listening.

If you have any questions that you’d like discussed on a future episode please contact me at [email protected].