Make sure to search your tax form if you hit unemployment in 2020 | Regional government
In 2020, the United States experienced widespread unemployment and business closures, making it difficult to prepare tax returns this year. I am not an expert, but we spoke with many of them and asked them: will unemployment benefits be taxed? “The simple answer is yes,” said Mark Steber, director of tax information at Jackson Hewitt. However, this only applies to people who have not chosen to withdraw taxes from their benefits. Generally, not withdrawing is not a big tax bill. But this year could be different. “Because these benefits were so much greater than they normally are, a lot of people will end up having taxes owed on these benefits,” said Nathan Rigney, senior tax research analyst at H&R Block. So, if you didn’t choose to withdraw taxes when you filed for unemployment, make sure you have all the proper documents for state and federal benefits. “Taxpayers who have received unemployment benefits will have to search for more than one tax document this year. And they may even have to go to the state website and download it,” Steber said. tax season 2020, visit newsy.com/TaxingTimes LEARN MORE: Taxation time: will my stimulus be taxed?