Unemployment beneficiaries may get second refund Share Updated: 1:26 PM CDT Apr 5, 2021 WDSU Digital Team Share Updated: 1:26 PM CDT Apr 5, 2021
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Show Transcript SHERMAN: MILLIONS OF PEOPLE WHO HAVE GOTTEN UNEMPLOYMENT BENEFITS COULD BE GETTING EXTRA MONEY THIS YEAR AS PART OF THE PRESIDENT’S STIMULUS PACKAGE. THERE WASN’T UPDATE ON BENEFITS EARNED LAST YEAR. THE IRS JUST ANNOUNCED THAT THOSE WHO QUALIFY WILL START TO GET A SECOND TAX REFUND. OUR CPA, KIMBERLY WASHINGTON, JOINS US LIVE TO EXPLAIN. TELL US ABOUT THIS TAX BREAK. THE FIRST THING YOU NEED TO KNOW IS IF YOU ALREADY CLAIMED UNEMPLOYMENT BENEFITS, YOU WILL BE EXPECTING A REFUND. WITH THE RECENT DEAL, YOU HAVE TWO EXCLUDE 10,200 DOLLARS FROM YOUR TAX RETURN. A BIG DEAL FOR SO MANY. SHERMAN: WHO QUALIFIES FOR THIS TAX BREAK? IT’S BASED ON YOUR INCOME. SO IF YOU MAKE LESS THAN 100 $50,000, YOU QUALIFY. YOUR HUSBAND AND WIFE YOU COULD QUALIFY AND THAT
Here s what taxpayers should do if they have missing or incorrect documents
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IRS expands Identity Protection PIN Opt-In program
March 8, 2021
During the COVID-19 pandemic, the IRS has noticed increased cases of identity thieves fraudulently filing claims for and receiving unemployment benefits on behalf of taxpayers.
These taxpayers are now receiving Form 1099-G, Certain Government Payments, showing an amount of taxable unemployment benefits they never received.
On January 28, 2021, the IRS provided guidance for taxpayers who find themselves in this circumstance.
Taxpayers who were incorrectly issued Form 1099-G for unemployment benefits they did not actually receive should contact the issuing state agency to request a corrected Form 1099-G showing zero unemployment benefits. Failure to do so may result in the taxpayer receiving an unexpected federal tax bill for unreported income. The taxpayer does not need to file Form 14039, Identity Theft Affidavit, which should only be filed if a taxpayer’s federal income tax return has been
Is unemployment taxable?
Generally, yes. Unemployment benefits must be reported on your federal tax return following the year you collected the money; it will be included in your federal gross income. You have options to pay taxes throughout the year. If you don t, you may wind up with a big bill at tax time.
You might also have to report unemployment benefits on your state return if the state taxes income.
You can quickly find the amount your state paid to your name in unemployment benefits in 2020 by looking at
Box 1 on Form 1099-G, which should have been mailed to you by now or made available online. In Box 4, you ll see the amount that was withheld for federal taxes, if any. These are the numbers you need to report on your tax return.
USA TODAY
We have officially entered tax season. And, in this time of uncertainty, USA TODAY is working to find answers to your tax questions – anything from how your stimulus checks or unemployment benefits affect your 2020 plans. You can submit your questions here and read earlier answers below.
We will be updating the Q&A, so check back often. But, also look to these places:
If you want to share your personal finance experience during the coronavirus crisis, you can email moneyforum@usatoday.com.
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