Unemployment Claims Taxes

Billions of federal coronavirus relief dollars are going straight to Americans, but will they have to send some of that money back to Uncle Sam at tax time?First, the good news: The money in stimulus checks is tax-free and won’t count as income for government assistance programs.The bad: If you’re out of work, you’ll owe federal and possibly state and local taxes on any unemployment benefits you collect, including the $600 weekly boost approved by Congress as part of its economic rescue package.When you decide to pay the taxes owed may depend on your financial situation.Some experts suggest you have the money taken out weekly, so you aren’t stuck with a big tax bill later.Unemployment benefits count as income, so they may also disqualify you from getting food stamps or federal subsidies for health insurance policies bought on the Affordable Care Act exchanges.

Source: MG News

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