topic Regarding unemployment insurance taxes in Deductions & credits

Regarding unemployment insurance taxes

Francisco2019 — Sat, 06 Mar 2021 17:13:29 GMT

Good Afternoon, My question is that the new bill under process that has the $10,200 tax free for unemployment for 2020. Will it apply for both federal, and state or only federal. Also, I live in New York City. So, I also have to pay New York City local tax. If it applies to federal and state would it also apply to New York City Local Tax. Basically, would it apply to everything?

Thank you

Re: Regarding unemployment insurance taxes

DoninGA — Sat, 06 Mar 2021 17:16:02 GMT

No one knows until the legislation has passed and the tax code has changed. As for a state tax on unemployment that is entirely up to the state not the federal government.

Re: Regarding unemployment insurance taxes

xmasbaby0 — Sat, 06 Mar 2021 17:16:18 GMT

No one can answer a question about how a tax law change that is currently being debated in the Senate will be implemented. Wait for Congress to to actually pass something and for it to be signed into law, then we will all find out how, when, and where the tax change will be implemented.

Re: Regarding unemployment insurance taxes

SweetieJean — Sat, 06 Mar 2021 17:16:18 GMT

That bill is not finalized, so we don't know if/how/when it will be implemented yet. But it would only affect Federal tax law. Stay tuned.

Re: Regarding unemployment insurance taxes

Francisco2019 — Sat, 06 Mar 2021 17:17:01 GMT

Thank you