2020 unemployment compensation exclusion FAQs — Topic I: Post unemployment compensation exclusion adjustment

These updated FAQs were released to the public in Fact Sheet 2022-39 PDF, December 2, 2022.

Q1. If I file my 2021 tax return electronically in 2022, what amount do I enter as my prior year Adjusted Gross Income (AGI) to submit my return? Where do I find this information? (updated March 23, 2022)

A1. When you prepare your 2021 tax return and file it electronically in 2022, you must sign and validate your electronic tax return by entering your prior-year Adjusted Gross Income (AGI) or your prior-year Self-Select PIN. If using your AGI for this purpose, you'll use the AGI as originally reported on Line 11 of your 2020 Form 1040 or 1040-SR. When you file your 2021 return, do not use the corrected AGI even if it was adjusted because of the unemployment exclusion.

To find your original 2020 AGI amount, you can view or create your online account or access Get Transcript online or by mail.

Q2. What are other ways to get my adjusted figures if I don't have the adjustment notice? (added June 25, 2021)

A2. You can request a Record of Account transcript in one of the following ways:

• Online or by mail using Get Transcript;
• Call our automated phone transcript service at 800-908-9946 for it be sent by mail; or
• Submit Form 4506-T.

A Record of Account will show the information on the return as originally filed and the exclusion adjustment. For more information about transcripts, see Transcript Types and Ways to Order Them.

Q3. Where do I find my updated return information for my FAFSA form if my income was reduced for the unemployment compensation exclusion (UCE) after filing my 2020 tax return? (added November 12, 2021)

A3. Based on information received from the U.S. Department of Education, an announcement is posted on fafsa.gov asking users to complete the FAFSA questions as instructed (including using the IRS Data Retrieval Tool, if eligible), then submit the FAFSA form. Afterward, users should contact their school's financial aid office regarding any financial changes (including unemployment compensation exclusion) that may have impacted their financial aid.

If you need updated account information and you received a notice CP21 stating your account was changed because of the unemployment compensation exclusion, you can use a combination of your tax return and the information provided in your notice.

If there were changes made to your income tax, your notice will show a "Decrease in tax" and the amount in the Summary section of the notice. If there were any changes made to the American Opportunity Tax Credit or any other credits, the change would also be reflected in the Summary section of your notice.

If you no longer have your notice or a copy of your tax return, request a Record of Account transcript, which shows information from your tax return and any changes made to your account. If you prefer to have these items shown separately, you can request a Tax Return transcript (shows return information we have on file from your tax return) and a Tax Account transcript (shows adjustments made to your account). You can request this information in one of the following ways:

• For a Record of Account Transcript, use Get Transcript Online.
• For Tax Return and Tax Account Transcripts, use Get Transcript (Online or by Mail) or call our automated phone transcript service at 800-908-9946.
• Submit Form 4506-T for all transcripts.