Unemployment Benefits

[RMT_BO]

How will receiving unemployment benefits impact total income earned and total taxes due?

[SoCalGal21 · Accepted solution]

Hi RMT_BO.  Great question.  Traditionally the IRS and many states tax unemployment income.  

https://www.irs.gov/taxtopics/tc418

So far there have been no announcements yet if the 2020 exception will apply in 2021. We are all tracking this with interest.

In 2020, the IRS made an exception

https://www.irs.gov/newsroom/tax-treatment-of-unemployment-compensation#:~:text=Unemployment%20compe....

Let me know if this answers your question.

and did not tax $10,200 per  independent filer.