If you get unemployment benefits this year, you could owe thousands to the IRS
Millions of Americans will have a rude awakening this tax season to discover that they owe the IRS money for unemployment benefits.
Around 40 million Americans last year, according to a latest report from the left-wing Century Foundation written by Brian Galle and Elizabeth Pancotti. That was over $ 580 billion in benefits. The average beneficiary received a total of around $ 14,000 in unemployment benefits last year.
However, researchers estimate that only 40% of unemployment benefits had withheld taxes in 2020. This is important because unemployment benefits are considered taxable income, including the $ 600 and $ 300 extended benefit payments approved by lawmakers last year.
While the unemployed don’t have to pay …