If you got Fed UI payments in 2020, don't miss this provision of the new stimulus bill:
Tax Exemptions for Unemployment Benefits
The first $10,200 of unemployment benefits will not be taxable for those who earned $150,000 or less in 2020. This amendment to the legislation could save taxpayers thousands of dollars each, especially for those who did not have withholding taxes taken out of their unemployment benefits.If you already filed, you may need to file an amended return. If you have not yet filed, you may want to wait until the IRS updates Form 1040-1 to account for the appropriate "exclusion from income."
YES, YES, I have confirmed that this applies to 2020 UI income !
Based in MD, near DC
Shopping from the Carolinas to New York
Have video cam; will travel
Here are major items:
$1,400 Stimulus Check (Per Qualifying Person)
You will get one if you're a single person making under $75,000, part of a married couple jointly filing under $150,000, or a dependent (including adults***) of such persons. Those earning more than that will get declining payment amounts that completely cut off at the $80,000/single and $160,000/married couple level.
***Adults here may include: i.) high school students 17 or older claimed by someone else; ii.) college students claimed by someone else; iii.) elderly adults claimed by someone else; iv.) disabled adults claimed by someone else
Enhanced $300 Federal Unemployment Insurance Extension
The ongoing federal $300 enhanced supplement (weekly) to state UI will be extended through to Sept. 6, 2021.
PUA and PEUC Extensions
Pandemic Unemployment Assistance (which is for those not qualifying for regular unemployment, such as the self-employed/gig workers/independent contractors) is extended through September with a maximum duration of 79 weeks (up to 86 weeks in high-unemployment states).
Pandemic Emergency Unemployment Compensation (which is for those who've exhausted their state's unemployment insurance and still need help) is also extended through September and maxes out now after 53 weeks.
Mixed Earner Unemployment Compensation
This gives some workers with both W-2 and 1099 income an extra $100 per week in aid and is extended through Sept. 6.
Child Tax Credit
$3,600 for every child under the age of 6.
$3,000 for every child between the age of 6 and 17.
Deposited into family bank accounts directly every quarter/month (still being decided how they'll do it). This is different from previous "tax credits" that give you back money when you file your taxes. Rather, this is direct cash aid sent to your bank account immediately. First payments are set to go out in July of this year.
Earned Income Tax Credit Expansion for Childless Workers
Lots of changes here (to be more generous).
The minimum qualifying age is now 19 (previously 24) and the maximum age of 65 has been eliminated!
The maximum EITC credit has been upped from $543 to $1,502 (nearly tripled) and the maximum benefit qualifying income level from $4,220 to $9,820, at which EITC benefits diminish and begin to phaseout at $11,610 instead of previously $5,280 for individual tax filers.
Laid off workers will have 100% of their employer's health insurance premiums paid for/subsidized through September 2021.
See walesmaven's posts re: UI tax waivers for the first $10,200 of aid.
Edited 4 time(s). Last edit at 03/28/2021 04:25PM by shoptastic.