Tax rules if you claimed unemployment

ORLANDO, Fla. - The clock is ticking to file your taxes. 

The deadline is next Monday, but with tax day approaching, some may have lingering questions about rule changes. One thing many people may be dealing with for the first time on their taxes -- is unemployment. 

The tax rules for unemployment changed with the new administration after many people had already filed their taxes.

FOX 35 News called on tax expert Doug Preble with Jackson Hewitt in Orlando to help sort out the confusion.

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"So typically you would have to claim any income you had whether it was earned or unearned - and unemployment is considered "unearned income" and is generally taxable on your taxes every single year - except - for 2020 because of the COVID pandemic and they said it's not going to be taxable."

"The challenge is - Congress made this decision in March so people that filed in January or February and claimed it as taxable income and already filed their tax returns." 

So what are those people supposed to do?   

"Well the IRS said they are going to fix all those tax returns that people filed in January and February - so they do not - I emphasize, do not want you to amend your tax return at this point. They will fix anything on the return relative to unemployment."

So if you filed your taxes before March 11, the IRS will amend your return to reflect the change for any taxes paid on unemployment up to $10-200 dollars.

You can find more tax tips at IRS.gov.