{"id":27007,"date":"2022-03-01T09:48:31","date_gmt":"2022-03-01T09:48:31","guid":{"rendered":"https:\/\/c1mdevsite.com\/braunability.com\/unemployment-benefits-tax-refund-will-you-receive-one\/"},"modified":"2022-03-01T09:48:31","modified_gmt":"2022-03-01T09:48:31","slug":"unemployment-benefits-tax-refund-will-you-receive-one","status":"publish","type":"post","link":"https:\/\/c1mdevsite.com\/mdctraining.ca\/unemployment-benefits-tax-refund-will-you-receive-one\/","title":{"rendered":"Unemployment Benefits & Tax Refund \u2013 Will You Receive One?\u202f"},"content":{"rendered":"
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It\u2019s tax filing season and people across the country are busy gathering financial statements of all kinds as they prepare to submit their tax return before the April 18<\/span>th<\/span> deadline. Tax prep in general is not something that many people look forward to each year. Since the pandemic in 2020, the past 2 years have been especially challenging for the average taxpayer trying to navigate their way through the tax filing process.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>When it comes to tax planning and compliance, some aspects are pretty clear, while other matters become more complicated, often requiring one to seek the help of a professional tax preparation service. One common area of concern for many U.S. taxpayers this tax season is related to <\/span>unemployment benefits.<\/span><\/b> Is it taxed, and how do I file properly? If you\u2019ve lost your job and are receiving unemployment, you\u2019ll want to pay special attention to the tax laws. Knowing these policies will help you receive what is owed to you on your return or minimize the amount you need to pay back.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>Fortunately, Waters Hardy has plenty of experience and expertise in all unemployment tax matters. We can handle your tax filing needs, so that you don\u2019t have to worry about making any mistakes. Waters Hardy guarantees professionalism and always offers accurate tax preparation and compliance, while getting you a maximum tax return.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>Are Unemployment Benefits Taxable?<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span>Yes, unemployment benefits are taxable. You may<\/span>\u00a0<\/span>not have been working, but you were receiving an income. So, on a federal level, the IRS views unemployment benefits as an income. Taxes for unemployment differ between states, as some states tax a portion of the benefits, and other states do not tax benefits at all.\u00a0 In addition, your city or county may tax unemployment as well. So, these are all different ways that will alter your rate of return or how much you owe in taxes. <\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span>How Unemployment Benefits Changed in 2021<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span>In an effort to recover from unemployment rates not seen since the Great Depression, <\/span>The American Rescue Plan Act <\/span><\/i>of 2021<\/span>, a pandemic relief law, <\/span>waived federal income tax on unemployment benefits paid out in 2020. This is a retroactive law since it was passed after some taxpayers had already filed tax returns for 2020. The changes included the following:<\/span>\u00a0<\/span><\/p>\n

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