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Returning Member
posted Sep 9, 2021 1:56:57 PM

Taxation after first 10k only again?

For tax year 2020, the first $10k of UI was not taxed per the CARES Act (I believe). 

Will that be the same for the 2021 tax year?

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2 Replies
Level 15
Sep 9, 2021 2:15:27 PM

That will depend on Congress.   If they decide to pass another law waiving tax on unemployment let's all hope they do  it BEFORE tax season begins instead of in the middle of the 2021 ax season----which has caused this to be the worst tax season EVER.

Employee Tax Expert
Sep 9, 2021 2:19:13 PM

Hi Jenga209jenga209,

 

Unfortunately the IRS has not issued any definitive guidance on whether or not the unemployment tax relief would extend to tax year 2021.  As CNBC reports, the consensus of financial experts seems to indicate it may not.