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RMT_BO
New Member

Unemployment Benefits

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

1 Best answer

Accepted Solutions
SoCalGal21
Employee Tax Expert

Unemployment Benefits

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.  

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

1 Reply
SoCalGal21
Employee Tax Expert

Unemployment Benefits

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.  

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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