Unemployment Tax Break?
Important Things To Know
- The latest stimulus bills permits tax exemptions up to $10,200 for unemployment benefits received in 2020. This applies to individuals whose adjusted gross income is under $150,000.
- If you’ve already filed your taxes for 2020, the IRS will be issuing refunds in May.
- If you have not filed your taxes yet , you can claim the exemption when you file.
- Federal $300 unemployment benefits have been extended into September.
- Payments will begin in May and carry out over the Summer.
- A refund will be given or a deduction from taxes owed will occur.
- Under the new exemption individuals who claimed Earned Income Tax Credit (EITC) will be eligible for an increase in tax credit.
- You can use your 1099-G to find out what benefits you were paid and how much was withheld.