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Excluding the unemployment benefits from taxable income will lower your tax bill on your tax return. If you are getting a refund, the refund will be increased. If you owed taxes, the amount you owed will be reduced. This only affects your 2020 tax return.
Your withholding numbers are now for tax year 2021 and are not affected by this provision.
Thanks for the info! I owe a little for health insurance not sure if it counts, otherwise nothing owed. And I am getting a refund for working part of the year and having a dependent.
I’m hoping this change doesn’t take too much extra time to process my return.
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