Other states don't tax income at all, as mentioned above, and that extends to unemployment benefits. So why are the remaining states adopting the tax exemption? For some, it's a matter of throwing jobless workers a bone during these trying times. That's why different states have different income tax rates, and some, like Florida, don't charge income tax at all.ĭespite the federal exemption on jobless benefits, these states will continue to count that $10,200 as income for tax purposes: States get to set their own rules when it comes to state taxes. The list of states not giving a tax break
In fact, a number of states won't let tax-filers exclude that $10,200 from their 2020 income. Unemployment tax credit: IRS tax refunds to start in May for $10,200 unemployment tax break: Here's what you need to knowīut while many jobless workers will get to enjoy that federal tax relief, some states aren't letting them off the hook so easily.
Those who paid taxes on those benefits already could be in line for a substantial refund with this year's tax returns.
#10200 UNEMPLOYMENT TAX BREAK GEORGIA FREE#
The bill also allows people to get their first $10,200 in unemployment benefits free of federal taxes. In addition to $1,400 stimulus checks, the bill boosted unemployment benefits by $300 a week through early September.Īnd that's not the only change the plan made to unemployment benefits. The American Rescue Plan – the sweeping $1.9 trillion coronavirus relief bill that was signed into law in mid-March – came with a host of provisions designed to provide meaningful aid to struggling Americans. Watch Video: 2020 taxes: Do you owe taxes on stimulus checks or unemployment?
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