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First Wealth re-launches financial education programme


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Last year's unemployment benefits could cost Americans $50 billion at tax time


Last year s unemployment benefits could cost Americans $50 billion at tax time
By Irina Ivanova
How unemployment affects your taxes
With tax season officially starting on Friday, millions of Americans could be in for a shock: owing taxes on unemployment benefits they received in 2020. The federal government and most states consider jobless aid taxable income. But unlike a paycheck, taxes typically aren t automatically deducted from such benefits, with the IRS expecting its cut.
Goldman Sachs estimates people could end up owing as much as $50 billion in taxes on unemployment insurance benefits they got last year as layoffs soared during the coronavirus pandemic come the April 15 tax filing deadline. That could wipe out many taxpayers refunds and even dent the economy. ....

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