While the stimulus checks that you received are tax-free and will not be counted as income, unemployment benefits are a different story.
About 30 million Americans received unemployment insurance benefits last year. This amounts to an estimated $580 billion in benefits, averaging about $14,000 in unemployment benefits last year.
Like regular income, unemployment income is subject to withholding taxes, which is important to remember. Including the $300 and $600 enhanced benefit payments that lawmakers approved last year.
If you received unemployment benefits, there’s a good chance that you may owe federal taxes.
File your taxes with an app, includes state tax filing. All inclusive pricing. Download here.
A good way to know is to file your taxes early and know the real numbers if you owe taxes to the IRS.
Giving you more time to pay before April 15th and incur interest.
Also, the IRS gives you payment plans if you’d like to make monthly payments.
Let us know.
Did you get unemployment in 2020?
Are you worried about on taxes that you may owe?
Discuss or share us your concerns about it, we’ll help guide you with the options you have.
