Social Security disability
Hi Terry. I just was approved for disability and was given a lump sum payment for the date I became eligible to current. Since I did not know about this money and did not get it till 2021 do I have to file an amended tax return for 2020? I have already gotten my refund. Also during this time I was collecting unemployment payments. Do I have to tell IDES or just stop certifying for benefits going forward?
Terry Says
You received this money in 2021. So it does not affect your 2020 return.
In fact, you might get another refund check, because they have just announced that the first $10,200 of unemployment benefits in 2020 are free from federal income tax (and Illinois tax too, as well as most states).
And if you qualified based on income on your 2020 return, watch for your $1400 stimulus check to land either in the mail in the form of a check, or a debit card– or possibly the bank where your disability are being paid.
