What to do if you received unemployment compensation in Utah during 2020
Under the American Rescue Plan enacted on March 11, 2021, unemployment compensation up to $10,200 paid in 2020 is excluded from federal adjusted gross income. This exclusion applies for those with a federal adjusted gross income which is less than $150,000. Utah law generally conforms to the federal treatment of unemployment compensation. If you received unemployment compensation in Utah during 2020 please do the following:
If you have not yet filed your federal and Utah returns: First, ensure you have the most updated forms and instructions and file your returns as normal. The unemployment compensation that is excluded for federal tax purposes will automatically be excluded for Utah tax purposes.
If you have already filed your federal and Utah returns: Do not file an amended Utah return to exclude any unemployment compensation at this time. The Utah State Tax Commission is exploring options to obtain the necessary information directly from the Internal Revenue Service to adjust your return and process a refund automatically. If it becomes necessary for you to take any action related to the exclusion of your unemployment compensation, additional instruction will be provided here after August 1, 2021.