ROCHESTER, N.Y. (WROC) — Changes to unemployment benefits during the pandemic are causing some confusion.
The American Rescue Plan, enacted on March 11, classified more than $10,000 of unemployment funds as non-taxable income, a financial lifeline for people who were or still are out of work.
But what if you already filed, and payed extra in taxes? One local experts says the IRS can help.
“Do not file an amended return to claim that,” tax professional Jim Schnell said.
“The IRS is getting ready to send out refund checks for that specific issue to taxpayers very shortly. So a lot of people correctly filed their returns in January and February and traditionally that would have been taxable income. But that’s an issue that has some confusion around it.”
Both New York State and the Federal Government extended their official tax deadlines to May 17. However, tax experts say if you wait too long to file, you could open yourself up to tax fraud or identity theft.