ST. PETERSBURG, Fla. — We're in the thick of tax season and guidelines, deadlines, and benefits keep changing.
Millions of Americans who filed for unemployment benefits in 2020, many for the first time ever, now need to be sure to include that money in their 2020 tax return as unemployment benefits are considered taxable income.
For most people in Florida, that means getting your 1099-G form from the Florida Department of Economic Opportunity (DEO).
The American Rescue Plan, passed earlier this month, waives federal tax on up to $10,200 of unemployment benefits collected in 2020, per person.
However, the $1.9 trillion COVID relief package only offered the tax break to those who earned less than $150,000 in 2020. The cutoff is the same whether you file as an individual or jointly.
Just this week, the IRS changed the guidelines again making more people eligible for the tax break by not counting jobless benefits as part of the 2020 income used to determine if you fall below that $150K threshold.
This is good news for thousands of Floridians who turned to Florida's unemployment system when the state shut down and businesses closed their doors last Spring.
"It’s a really great deal. For many people who received unemployment compensation, it’s going to take care of most, if not all of it," said Tampa-based tax attorney, Seth Cohen.
Tim Biondollo is a bartender in Treasure Island, Florida. Last year at this time he was struggling to pay bills and child support without any money coming in from Florida's unemployment department.
Months went by before he ever saw a deposit but he finally got most of his benefits and had no trouble getting his 1099-G form from his claimant portal through the state's CONNECT website.
Biondollo, who is now busier than ever during Florida's spring break season, called the new tax benefit "exciting" and said, "Everyone could use some good news."
Attorney Seth Cohen says everyone still needs to get their 1099-G form from the DEO and include it in their return.
"Make sure you file your tax return with the 1099-G and then take the exclusion," Cohen said.
If you don't, Cohen says the IRS will be flagged because they already have a record of your 1099-G and will see that you didn't include it.
ALREADY FILED?
If you've already filed your 2020 taxes and this benefit applies to you, the IRS website currently says you should not file an amended return at this time. The IRS will issue additional guidance as soon as possible.
MISSING OR INCORRECT 1099-G
Many claimants who filed for unemployment at some point in 2020 are reporting problems trying to obtain the necessary 1099-G form from the Florida DEO.
A spokesperson with the DEO said, "The Department completed electronically processing 1099-G Tax Forms for all claimants on January 17, 2021. All claimants should have access to their 1099-G Tax Form in their CONNECT account. Claimants who opted to receive communication from the Department through U.S. Mail should have received their 1099-G Tax Form no later than January 31, 2021."
MORE TIPS
Enable pop-ups in browser: When viewing your 1099-G Tax Form in CONNECT, Florida's unemployment portal, be sure to enable pop-ups on your web browser. Pop-up blockers restrict you from viewing your 1099-G Tax Forms and other important documents from the department.
Fill out the form: If a claimant did not receive their 1099-G Tax Form, they received a 1099-G Tax Form by mistake, their 1099-G Tax Form is incorrect, or they cannot access their 1099-G Tax Form, visit: 1099grequest.myflorida.com
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