Hal_Al
Level 15

Deductions & credits

Q. Does the $10,200 unemployment tax break only effects state tax or if it's for federal taxes as well?

A.  Yes, it is for for federal income  tax. In fact, it is for federal income first.  So, the better question is: does it apply to my state income tax too.  

 

Answer: it varies. See https://www.cnbc.com/2021/03/30/10200-unemployment-tax-break-american-rescue-plan-states-giving-the-...