With the American Rescue Plan Act of 2021 now in force, the Illinois Department of Revenue is calculating refunds for some taxpayers who received unemployment benefits in 2020 and already filed their taxes. | Adobe Stock
With the American Rescue Plan Act of 2021 now in force, the Illinois Department of Revenue is calculating refunds for some taxpayers who received unemployment benefits in 2020 and already filed their taxes. | Adobe Stock
Illinois residents who filed their 2020 tax return before the recent enactment of a federal unemployment tax exemption could look forward to a refund from the Illinois Department of Revenue (IDOR) if last year's income included unemployment benefits.
State Sen. Terri Bryant (R-Murphysboro) took to Facebook to discuss the impact of the exemption on Illinois residents who were forced to take unemployment due to the COVID-19 pandemic.
“The Federal American Rescue Plan Act of 2021 includes a retroactive provision making the first $10,200 per taxpayer (or up to $20,400 married, filing jointly) of 2020 unemployment benefits nontaxable for returns with a modified Adjusted Gross Income (AGI) of less than $150,000,” Bryant posted to her Facebook page. “This means Illinois taxpayers who received unemployment benefits in 2020 may be eligible for a tax refund from the State of Illinois based on the exclusion of the $10,200.”
A news release from the Revenue Department shared by Bryant stated that the IDOR would calculate the refunds. It will begin notifying taxpayers who filed before March 15 how much they will receive as a refund. Refund checks should be received within three weeks of being notified.
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