Unemployment Benefits Deduction Update

02 Jul Unemployment Benefits Deduction Update

Did you file your federal and state tax returns prior to the unemployment benefits deduction made available under the American Rescue Plan Act? You are due a refund!


Passed by Congress in April 2021, the American Rescue Plan Act of 2021 (ARPA) excluded up to $10,200 in unemployment compensation per taxpayer when calculating taxable income. We shared earlier that the IRS reviewed tax returns filed prior to the enactment of ARPA to identify the excludible unemployment compensation, and also made corrections for the Earned Income Tax Credit, Premium Tax Credit and Recovery Rebate Credit, and began issuing refunds to affected taxpayers.

What about my Ohio return?

In May 2021, the Ohio Department of Taxation issued guidance on how to amend your Ohio returns. After the IRS has accepted your amended 2020 returns, then you can:

  1. File an amended Ohio IT 1040 (and SD 100 for tax based school districts) to report your new adjusted gross income (AGI);
  2. Include a copy of your IRS transcript; and
  3. Complete the Ohio Reasons and Explanation of Corrections (IT RE and SD RE). Check the “Federal adjusted gross income decreased” box and list “Federal unemployment deduction refund” in the “Detailed explanation” section.

How do I do this?

Get your IRS transcript at irs.gov/individuals/get-transcript. Call Ohio at 1-800-282-1780 to speak with a taxpayer services representative for assistance. Of course, feel free to call us at 614-524-4888 for help with amending your Ohio return!


We work closely with you to handpick a solution for your unique tax situation.
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