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Unemployment still subject to NY State (and NYC) taxes. It's only federal taxes get an unemployment benefits exemption for the first $10,200. I think I read somewhere that those who haven't filed yet and have this issue should hold off on filing.
I know someone who is a NYC resident and received NJ unemployment benefits who filed before the new stimulus bill was passed. The IRS took the tax money he was due at that time, hasn't yet refunded the taxes for the first $10,200, hasn't processed his tax return and he hasn't received the $1400 stimulus (which he is eligible according to the income levels in the latest stimulus bill) yet either.
The software has been updated as far as turbo and likely tax cut . There is no more reason to hold off on the federal .
I may hold back the state longer and see what they end up doing
Turbo has released the updates to the tax software to update for the changes in the unemployment exemption and other care act provisions.
But be aware New York so far has not made the 10,200.00 in unemployment insurance not taxable .
So the software will change the federal but not the state ..law makers are still trying to push for making the first 10,200 in unemployment not taxable by our state but so far it is what it is .
Also New York has pushed the due date out to may 17 like the federal
Thanks, good to know. I am dealing with my tax accountant now but she is being unacceptably slow with my returns this year. I'm thinking of jumping ship and moving elsewhere.
I completely forgot Covid UE was extra on top of the usual.
If so them that makes sense on why you would have to pay tax. It's a crap ton more than the $400 a week I got years ago.
If some people were getting $4k a month in enhanced UE under the extra plan then yes unfortunately you'll probably have been above that Fed threshold.
Unemployment is gotten by families of all incomes ...it is simply added to all the other household income and taxed accordingly...whether standard deductions leave you with no tax liability is a different issue .
But in the end it still is never double taxed like you said...
I think I got 20k in unemployment last year and all I was working pre covid was one day a week
Over the weekend I found out that the person that filed their taxes early and paid taxes on his Unemployment benefits finally got the stimulus payment as a mailed check although the 2 prior stimulus payments were via direct deposit (all via the same bank account). Finally after much searching online, it seems that IRS won't pay a refund (or stimulus) into an account that it withdrew funds for a tax payment. Since they are due a federal tax refund because of the stimulus deal (as they earned less than $10,200 in UE benefits), I assume that will also come as a mailed check rather than direct deposit.
Over the weekend I found out that the person that filed their taxes early and paid taxes on his Unemployment benefits finally got the stimulus payment as a mailed check although the 2 prior stimulus payments were via direct deposit (all via the same bank account). Finally after much searching online, it seems that IRS won't pay a refund (or stimulus) into an account that it withdrew funds for a tax payment. Since they are due a federal tax refund because of the stimulus deal (as they earned less than $10,200 in UE benefits), I assume that will also come as a mailed check rather than direct deposit.
No idea ..you would think the irs and treasury would use the same bank link for both a payment and deposit unless there is a separate approval need for deposit than the approval you may have given for withdrawal
No idea ..you would think the irs and treasury would use the same bank link for both a payment and deposit unless there is a separate approval need for deposit than the approval you may have given for withdrawal
Agreed but I found the information on the IRS website (as the person's bank had no idea why the direct deposit didn't happen).
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