For tax purposes, unemployment compensation (UC) generally is included in gross income. Under the American Rescue Plan Act (ARPA), for tax years beginning in 2020, taxpayers with adjusted gross income (AGI) under $150,000 may exclude UC of up to $10,200. The $150,000 AGI limit applies for single filers, heads of household and joint filers. But for joint filers below the AGI limit, the $10,200 exclusion applies separately to each spouse. Under the ARPA, eligible individuals will also receive an additional $300 per week in unemployment benefits through Sept. 6, 2021. The ARPA was passed by Congress on March 10 and is expected to be signed into law on March 12. Call or visit our website for more information! www.mjscpa.com/
