No Break for unemployment income received in 2021

Tax season is fast approaching — and recipients of unemployment benefits in 2021 don’t appear to be getting a tax break like they did for 2020. Approximately 25 million people collected jobless benefits in 2021, according to Andrew Stettner, a senior fellow and unemployment expert at The Century Foundation. Unemployment benefits generally count as taxable income. The American Rescue Plan Act, a relief law Democrats passed in March last year, authorized a waiver of federal tax on up to $10,200 of benefits per person for 2020. Many states offered relief, too.

https://www.cnbc.com/2022/01/03/no-a-tax-break-on-2021-unemployment-benefits-isnt-available.html#:~:text=Tax%20season%20is%20fast%20approaching,generally%20count%20as%20taxable%20income.&text=Households%20qualified%20for%20the%20federal,minus%20benefits)%20was%20under%20%24150%2C000.