If you get unemployment benefits this year, you could owe thousands to the IRS

If you get unemployment benefits this year, you could owe thousands to the IRS
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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 …

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