Question about unemployment taxes 2020 (collecting, file, receive, money)
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So with the new unemployment package potentially coming, it says that the first 10,200 dollars of 2020 federal unemployment will not be taxed. I received a 1099g and paid 708 dollars in taxes for unemployment. Will I get that 708 back as a refund?
We didnt file 2020 yet. AGI is $170K married, filing jointly. We collected $37K in unemployment ($130K in wages)
Theres verbage in the $10,200 that states if you made over $160K you are SOL on the tax credit. So it seems we are penalized for collecting too much unemployment and now owe taxes on all of it (even though taxes were taken out, jjust not enough)
We also are penalized for making too much money ($160K) in getting a tuition credit, and some other credits that are over the limit. Doesnt seem fair that had we not collected unemployment, we'd be ok now (though we would have sufferred <then>)
Anyone else in the same bracket, and can anything be done?
... and now just thinking - 2 daughters collected unemployment as well (One Regular, One Pandemic) for Massachusetts.
For them, they made under $75K for the year, so, for them, I think the first $10,200 of unemployment wouldnt be taxed which would certainly help (One on Regular made $16K and had 0 federal taken out), and the other on PUA Mass didnt get a 1099-G so I had to order it, and its coming. No way to tell how much she made, or a way to see it online.
When I started receiving unemployment, my AZ unemployment balance was 6,000 (25 weeks of 240 a week).
I have about 10 weeks of 240 dollars per week left in my AZ unemployment balance. If the new stimulus package is signed and my unemployment balance gets to 0 (if have not found a job), will I no longer receive state benefits of 240 dollars, but only get the 300 from the new stimulus package?
[quote=Smoove7;60569054]Glad I asked as I have not filed my taxes yet.
When I started receiving unemployment, my AZ unemployment balance was 6,000 (25 weeks of 240 a week).
I have about 10 weeks of 240 dollars per week left in my AZ unemployment balance. If the new stimulus package is signed and my unemployment balance gets to 0 (if have not found a job), will I no longer receive state benefits of 240 dollars, but only get the 300 from the new stimulus package?[/QUOTE]
It is my understanding that if the bill passes, that does include the programs that enable states to continue with their UE (PEUC, PUA) as well as the federal kicker of $ 300.
So with the new unemployment package potentially coming, it says that the first 10,200 dollars of 2020 federal unemployment will not be taxed. I received a 1099g and paid 708 dollars in taxes for unemployment. Will I get that 708 back as a refund?
I had a very similar question, my guy!!! Because 10,200 dollars of unemployment benefits are now tax free and because I wanted to receive my 600 dollar stimulus check, I quickly filled for my refund. I actually did end up owing money for the UI benefits though I started withholding 10 percent of my weekly benefits. Ultimately, it ate into my 600 dollar stimulus check causing me to receive a paltry sum of 395 dollars!
Will we have to turn around and send in an amended tax return for 2020 once the ink is dry on the ARP on Friday???
I had a very similar question, my guy!!! Because 10,200 dollars of unemployment benefits are now tax free and because I wanted to receive my 600 dollar stimulus check, I quickly filled for my refund. I actually did end up owing money for the UI benefits though I started withholding 10 percent of my weekly benefits. Ultimately, it ate into my 600 dollar stimulus check causing me to receive a paltry sum of 395 dollars!
Will we have to turn around and send in an amended tax return for 2020 once the ink is dry on the ARP on Friday???
It is almost certain only two ways of dealing with this situation are filing an amended return, and or (likely) something will be created allowing excess taxes paid in 2020 for UI to be credited towards 2021 taxes filed in 2022.
Treasury Department/IRS is being stretched to limits dealing with their own covid-19 staffing problems while also coping with Congress doing stimulus checks and everything else right during tax season. Task of going through hundreds or thousands of those who already filed 2020 taxes to flag for those who *might* benefit from these changes to UI benefits, doing the numbers, deciding if a credit or refund is due, notifying taxpayers, etc... is more than their job is worth.
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