Q & A: The $10,200 Unemployment Tax Break

Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break–in effect only for the 2020 tax year–lets you exclude the first $10,200 from taxable income. Here’s what you should know:

Highlights of the American Rescue Plan Act

Signed into law on March 11, 2021, the American Rescue Plan Act (ARPA) contains several tax provisions affecting individuals and families. Let’s take a look:

The COVID-Related Tax Relief Act of 2020

The Consolidated Appropriations Act, 2021, H.R. 133 included funding for the government, extensions for expiring tax extenders, tax relief under the COVID-related Tax Relief Act of 2020, and many more items. Passed by both the House and Senate, it was signed into law by President Trump on December 27, 2020.

JOB LOSS COULD AFFECT YOUR TAX SITUATION

If you’ve lost your job you may have questions about how it could affect your tax situation. Here are some answers:

The Tax Consequences of Losing Your Job

If you’ve lost your job you may have questions surrounding unemployment compensation, severance, and other issues that could affect your tax situation. Here are some answers: