Millions of out-of-work Americans who are collecting unemployment benefits as a result of the coronavirus pandemic could face an unpleasant surprise when they file their taxes next year.
That’s because unemployment benefits, including the extra money distributed through federal aid programs, count as taxable income.
Unemployment benefits vary by state, but the $2.2 trillion CARES Act signed into law at the end of March sweetened the aid, giving beneficiaries an additional $600 per week through the end of July. The average laid-off worker was receiving about $930 per week in benefits before the boosted aid expired, prompting President Trump in August to issue an executive order partially restoring the supplement at $300 a week.
A recent survey conducted by Jackson Hewitt Tax Service found that 38% of Americans receiving benefits were unaware that the money was taxable – and nearly two-thirds of those individuals had not set aside or withheld money from the payment for their 2020 income taxes.
Stupid is as stupid does. Just like the government
I collected unemployment one time in my life for 6 months. I ended up owing almost 3k in taxes.
Never trust the government when they tell you they are giving you anything for it only will cost you more every time guarantee
Not Right !!! This $$$ should be TAX Free !!! Unemployment should be too
We get Taxed to Death in America & it needs to STOP NOW !!!!
They would tax you for the damn AIR you breath if they could find a way !!!!
Sick of it !!!
They tax you when the Whole country is Down & at Risk & that should be Illegal !!!!
Tax the Democrat Party & Recover that $$$ 30 million they waisted on Witchunts for Trump !!!!