COVID-19 stimulus package: Jobless Americans get a tax waiver of up to $10,200 on unemployment benefits

 March 17, 2021

The latest $1.9 trillion stimulus package creates a new tax break for tens of millions of workers who received unemployment benefits last year after businesses were forced to close and lay them off during the coronavirus pandemic.

Many Americans who were potentially left with a surprise tax bill on that jobless aid are poised to benefit from the new exemption. Until now, jobless insurance had to be reported as taxable income and many would likely owe federal income taxes on those benefits.

It's retroactive. This is for 2020,"

Roughly 40 million Americans received unemployment aid in 2020, according to The Century Foundation.

related posts: