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YES and NO.  The American Rescue Act was passed March 11, 2021. It made an additional refunds available to some Taxpayers.

There’s no additional refund (“Hidden Treasure”) available for Taxpayers who filed their 2020 tax return before March 31, 2021 claiming only wages and federal unemployment income.

The IRS automatically processes an additional refund for unemployment income made temporarily non taxable by the American Rescue Act.  HOWEVER, the IRS will NOT automatically refund credits or deductions  available because of the Taxpayer’s lower taxable income (e. g. Earned Income Credit, Retirement Savings Credit).  Taxpayers may need to file an amended return for refund if they omitted a deduction or credit on their originally filed 2020 tax return OR if they:

1.  Filed their 2020 tax return before March 31, 2021 AND unemployment income AND dependents or other credits were claimed.    OR
2. Filed their 2020 OHIO TAX RETURN or OHIO SCHOOL DISTRICT RETURN before March 31, 2021 AND unemployment income AND children or other credits were claimed. Unemployment income may have been taxed. As of July 20, 2021 Ohio is not automatically refunding taxes calculated and paid for unemployment income made non taxable by the American Rescue Act  (like IRS does).

Moreover, if #1 above applies and the new lower income (after the unemployment income has been removed) qualifies Taxpayer for Earned Income Credit on the Federal Return, Ohio gives Earned Income Credit on the Ohio Return, producing a SECOND REFUND. In some instances the lower Ohio income (because of the Ohio Earned Income Credit)  lowers School District income producing a THIRD REFUND.   These little known refunds can be “Hidden Treasure”.

ACTION PLAN: Talk to your Tax Pro. Ask them to review your treasure map er I mean your 2020 Original Tax Return to see if the above applies and to see if any “Hidden Treasure” Er additional refund is available

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