tax treatment of unemployment benefits received in 2021 (not 2020)

sommers · ‎May 28, 2021

The feds allowed a $10,xxx.xx deduction for pandemic unemployment insurance payments made. in calendar 2020 (example--received $15K in benefits but deduct $10K --pay taxes on balance of $5K).

Will the new 2021 legislation (by Biden) which authorized the $10K deduction on 2020 received "benefits" extend that deduction for benefits paid/recieved in 2021?

xmasbaby0 · ‎May 28, 2021

Extending that exclusion of federal tax for unemployment for 2021 would take another act of Congress.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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DoninGA · ‎May 28, 2021

No. That exclusion was included in the American Rescue Plan and is only for tax year 2020.

xmasbaby0 · ‎May 28, 2021

Extending that exclusion of federal tax for unemployment for 2021 would take another act of Congress.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Carl · ‎May 28, 2021

Will the new 2021 legislation (by Biden) which authorized the $10K deduction on 2020 received "benefits" extend that deduction for benefits paid/recieved in 2021?

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tax treatment of unemployment benefits received in 2021 (not 2020)