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Friday, August 07, 2020

Tax preparers warn unemployment recipients could owe IRS

Tax preparers are concerned that many of the millions of Americans receiving unemployment benefits due to the pandemic are unaware that they might owe money to the IRS next year.

Jobless benefits are subject to federal income taxes, as well as state income taxes in most parts of the country.

But workers who are collecting benefits for the first time may not be aware of those tax implications, or they might opt against having taxes withheld from their benefit payments. People who do not have enough money withheld during the year could end up with smaller refunds or balances due to the IRS when they file their 2020 tax returns.
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Those folks that put off finding other work because they liked that extra $600 a week on top of their regular unemployment are going to be screaming mad next tax season.

8 comments:

  1. Government giveth,,,governments takes back.

    Never trust the government

    ReplyDelete
  2. More excuses to riot.
    They broke all the windows in the courthouse in Richmond when evictions were restarted.

    ReplyDelete
  3. There Ain't No Such Thing As A Free Lunch

    ReplyDelete
    Replies
    1. Except those who know how to work the tax code to their favor. There are those who have learned the way and paid no taxes for years. It is all in knowing the code.

      Delete
  4. Anyone who has ever been on unemployment before will know this.

    ReplyDelete
  5. I used my $1200 to pay my quarterlies.

    ReplyDelete
  6. Will they not have to pay both sides of Social Security?.....

    ReplyDelete

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