4 - Erroneous AbatementThe timely filed TC 150 return for TY 2018 is determined to be a nullity. The valid taxpayer filed a return reporting tax of $.00 and withholding of $2,500 which posted as a TC 976. Form 14039 is included with the return. The ASED for the valid return is expired. Based on the original return, the account shows TC 150 tax of $5,000, and withholding of $6,000. A CP 2000 proposing a tax increase of $2,000 based on unreported income is issued to the valid taxpayer’s last known›American Rescue Plan Act (ARPA) - General
ARPA - Unemployment Compensation Tax Relief
Internal Revenue Manual Part 25. Special Topics · 2026-10-03 edition · updated 2026-10-04 · United States
Provision 9402 of the American Rescue Plan Act (ARPA) authorizes qualified individuals who received unemployment compensation during calendar year 2020 to exclude up to $10,200 ($20,400 if filing MFJ) from their Adjusted Gross Income (AGI).
To qualify for the exclusion of unemployment income, the taxpayer(s) must:
Have a valid SSN or ITIN
Have received unemployment compensation during calendar year 2020
Meet the threshold of $150,000, regardless of filing status
The Modified Adjusted Gross Income (MAGI) is calculated to determine if the $150,000 threshold is met by subtracting the total amount of all unemployment compensation from the Adjusted Gross Income (AGI). An Unemployment Compensation Exclusion Worksheet can be found in the tax year 2020 Form 1040 instructions.
If the result is less than $150,000, the threshold is met. The taxpayer(s) may exclude up to $10,200 ($20,400 if MFJ) from their unemployment income when filing
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