Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Have never understood why certain persons under withhold all year only to get a "huge" tax refund. It isn't a refund per se, more like they've loaned federal government money interest free, and now get it back.
So IMHO there's your answer, people who under withheld under normal circumstances now could find things are jussst right, or close enough that they either are getting a smaller refund or nothing at all.
That being said yes, agree it is the extra $600 or $300 that is tripping many people up. By estimates many received between $20k to $30k (if not a bit more) in UI bennies (total regular and extra federal payments) in 2020.
Depending upon factors such as how many weeks a household worked in 2020 before going on UI they may have earned enough to hit marginal tax rates if not get kicked into a higher bracket than were expecting.
Those who are self-employed/independent contractors, gig workers or whoever that got PUA may also be in for a shock come tax time. If they were "unemployed" for good part of year (and received PUA payments), then there may be a corresponding drop in certain expenses that trigger deductions and credits.
If such such persons only received PUA for all or most of their income for 2020 that is simple straight forward taxed.
Even simple things like student loan interest deduction may be lost or badly reduced for 2020 if borrowers had loans put into forbearance for any period. No payments means no interest was paid...
I think you mean under withheld and get a large refund.
Have never understood why certain persons under withhold all year only to get a "huge" tax refund. It isn't a refund per se, more like they've loaned federal government money interest free, and now get it back.
Agree with you. I'm never a fan of people using the federal government as their piggy bank for the year with zero interest made on their money.. But I do know quite a few people look forward to and count on their hefty returns.
Another thing people are going to get "burnt" on is the marketplace health insurance advance premium tax credit since the unearned UI income is counted toward AGI which is used for premium calculations for "repayments" of the advance premiums. I've seen quite a few people get hit with the payback for it on their 2020 tax returns.
One person I know collected max of $713 for 26 weeks, 13 of PEUC, 20 of EB and now 11 of PEUC. Collected all $600s and LWA $300s and now the FPUC $300s. I sat and figured out he will have hauled in around $61K of benefits and likely will get extended to get the 24 of PEUC plus the $400 of FPUC if/when new bill passes. In total with new legislation $91,900 for 94 weeks.
Agree with you. I'm never a fan of people using the federal government as their piggy bank for the year with zero interest made on their money.. But I do know quite a few people look forward to and count on their hefty returns.
Another thing people are going to get "burnt" on is the marketplace health insurance advance premium tax credit since the unearned UI income is counted toward AGI which is used for premium calculations for "repayments" of the advance premiums. I've seen quite a few people get hit with the payback for it on their 2020 tax returns.
One person I know collected max of $713 for 26 weeks, 13 of PEUC, 20 of EB and now 11 of PEUC. Collected all $600s and LWA $300s and now the FPUC $300s. I sat and figured out he will have hauled in around $61K of benefits and likely will get extended to get the 24 of PEUC plus the $400 of FPUC if/when new bill passes. In total with new legislation $91,900 for 94 weeks.
Plan is to get this latest stimulus bill done, dusted and on WH desk before 13 March end date of current UI CARES act version. Tax thing wasn't included in bill and way things are going in senate it will be cutting things down to wire just to get things wrapped up according to schedule.
That leaves doing a stand alone bill which may or may not pass before 15 April IRS deadline for tax filing.
Have a hunch many on UI are going to end up filing for extensions and waiting to see what happens over spring and summer.
Did you hear?! It's approved/confirmed! We get continued UI till Sept 9th !!! AND we get the $1400 stimulus soon!
it isn't approved/confirmed. The Senate Dem's version was passed. It still needs to be approved by the House and sent to Biden for signature. Nothing is an inked deal yet.
it isn't approved/confirmed. The Senate Dem's version was passed. It still needs to be approved by the House and sent to Biden for signature. Nothing is an inked deal yet.
The House is Dem controlled and unless it's passed ASAP they're gonna lapse the benefits for a lot of people. It's gonna be passed and signed on Tuesday.
The House is Dem controlled and unless it's passed ASAP they're gonna lapse the benefits for a lot of people. It's gonna be passed and signed on Tuesday.
As if they care? LOL just saying. I only go by certainties and when a law is passed. then we will 100% know.
Shouldn't bet the egg money on PEUC, PUA and rest of lot being extended past new September (or whatever) deadline in fall.
States are starting to open up fully, vaccination rates are up, new cases in many areas are stabilizing or decreasing. In short while it may be a long tough slog for some, things are and will begin to return to normal; whatever that is.....
If things are extended yet again, I for one expect to see some sort of tightening up, things like reinstating work search requirements. Deeper questions and or restrictions on PUA and PEUC so one or both aren't basically handing out money just because people say they are on UI due to covid.
No small number of people need to face the fact, because it is a fact they won't be returning to whatever employment they had pre-covid. This includes self employed, independent contractors, etc.. As such it may be time (for some yet again) to start looking at other things.
Shouldn't bet the egg money on PEUC, PUA and rest of lot being extended past new September (or whatever) deadline in fall.
States are starting to open up fully, vaccination rates are up, new cases in many areas are stabilizing or decreasing. In short while it may be a long tough slog for some, things are and will begin to return to normal; whatever that is.....
If things are extended yet again, I for one expect to see some sort of tightening up, things like reinstating work search requirements. Deeper questions and or restrictions on PUA and PEUC so one or both aren't basically handing out money just because people say they are on UI due to covid.
No small number of people need to face the fact, because it is a fact they won't be returning to whatever employment they had pre-covid. This includes self employed, independent contractors, etc.. As such it may be time (for some yet again) to start looking at other things.
I think the benefits are more tied to the job market and other economy metrics than the virus being under control. If the unemployment numbers stay high they have no choice but to pass extension legislation otherwise they commit career suicides. Also you don't want people falling off the benefits cliff in a bad job market they might drop out of the labor force altogether. No politician wants that no matter how cynical they are.
It all depends on how quickly this economy rebounds. The jobs report in January was abysmal, February is only slightly less abysmal, we added 300 thousand jobs vs the 22 million lost. At that rate it would take over 5 years to get back to the pre pandemic job market. They're hoping the stimulus will speed that up but we'll have to wait and see.
If I had to guess I'd say another extension into the next year is more likely than not.
Last edited by JayDubbs77; 03-07-2021 at 03:43 PM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
