If you got Fed UI payments in 2020, don't miss this provision of the new stimulus bill: Even if you had some Federal Tax withheld from your payments you probably would owe more if it were not for this change!
Tax Exemptions for Unemployment Benefits. I had my stste withhold Fed taxes but would have owed still more. BUT, now I have a hefty refund due to me.
Here is what the new bill does:
The first $10,200 of unemployment benefits will not be taxable for those who earned $150,000 or less in 2020. This amendment to the legislation could save taxpayers thousands of dollars each, especially for those who did not have withholding taxes taken out of their unemployment benefits.If you already filed, you may need to file an amended return. If you have not yet filed, you may want to wait until the IRS updates Form 1040-1 to account for the appropriate "exclusion from income."
YES, YES, I have confirmed that this applies to 2020 UI income !
Also, if you have children, be sure to check out other new provisions that may provide significant benefits to your family.
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