Waiting until the last minute to file taxes could be a mistake this year. The Michigan Department of Treasury is urging those who collected unemployment benefits in 2020 to get their taxes done and filed.
State Treasurer Rachael Eubanks said, “Please don’t hesitate to file your individual income tax return. Taxpayers who think they owe taxes often wait to file right up to the filing deadline. The American Rescue Plan changes the dynamic of the 2020 tax year and this year’s filing season. A larger than anticipated refund could provide much-needed assistance during the pandemic.”
According to the Treasury, the federal American Rescue Plan Act excludes unemployment benefits up to $10,200 from income for tax year 2020 for those within certain income brackets.
If taxes are already filed, taxpayers who collected unemployment should not file an amended state or federal return. The Treasury awaits federal guidance as to how to process refunds but expects to have more information soon.
Filing online and choosing direct deposit is the fastest and the Treasury’s preferred way to file. 2020 taxes are due at 11:59 p.m. on May 17, 2021.
Reporting for WGRT – Jennie McClelland
