IRS News Release: U.S. Territory Residents Get Unemployment Compensation Tax Break (IRC §85)

April 8, 2021, 5:00 AM

U.S. territory residents are eligible for the unemployment compensation exclusion passed under the American Rescue Plan Act, the IRS announced. If an eligible resident of a U.S. territory receives unemployment compensation payments that are otherwise subject to U.S. income tax, they may be eligible to exclude up to $10,200 per person of unemployment compensation from U.S. income tax for 2020, following legislation that was passed March 11, 2021, the IRS stated. The U.S. territories are American Samoa, the Commonwealth of the Northern Mariana Islands, Guam, the Commonwealth of Puerto Rico, and the U.S. Virgin Islands, the IRS noted. [IR-2021-81 (Apr....

To read the full article log in.

Learn more about a Bloomberg Law Subscription.