NEW YORK (WSYR-TV) — The economy took a massive hit from the coronavirus pandemic, causing millions of Americans to lose their jobs.
Here are some tips on what you need to know when filing your taxes if you collected unemployment in 2020.
In the latest COVID relief package, Congress made up to the first $10,200 of unemployment payments non-taxable, but only if your household makes less than $150,000 per year.
You’ll need to check how New York State is handling taxes on unemployment benefits, but the federal rule is aiming to give Americans who lost their jobs a break.
Check your 1099-G form, or your state’s unemployment benefits website. If you opted to have your taxes withheld from the weekly payments, your amount owed at tax filing will be less, and you may even get a partial refund.
If you opted out, be prepared to pay those taxes when you file. If you are unable to pay, call the IRS to work out a payment plan. One additional bright spot this year is that you will not have to pay one cent of tax on any of the federal stimulus payments you received in 2020.