Questions & Answers

Do I need to amend my state tax return to claim the unemployment exclusion?

Federal Returns
The American Rescue Plan of 2021 excludes the first $10,200 of unemployment compensation from tax on your 2020 federal tax return.

The IRS is working on making direct adjustments to taxpayer returns that have unemployment income. They plan on sending additional refunds without the need for an amended federal return starting in May 2021.

You would only need to amend your federal tax return if the exclusion of unemployment qualifies you for an additional federal credit or deduction not already included on your original tax return. However, we strongly recommend you wait to receive any and all additional refunds from the IRS before amending your tax return. See for more information.

State Returns
Some states also allow the unemployment exclusion.

The following states have announced that an amended return is not needed. They will automatically adjust affected returns and issue refunds.

The following states have announced that those who filed an original state return without claiming the exclusion will need to file an amended state return.
  • Arizona
  • Connecticut
  • District of Columbia
  • Illinois (See More)
  • Louisiana
  • Maine
  • Missouri
  • Nebraska (See More)
  • New Mexico
  • North Dakota (See More)
  • Oklahoma
  • South Carolina

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