American Rescue Plan and Unemployment Benefits

Recently, the American Rescue Plan made the first $10,200 per person in unemployment benefits tax-free for those taxpayers under an income threshold of $150,000. In new guidance released from the IRS today, when calculating federal AGI, workers can exclude unemployment benefits to determine whether they meet this threshold.

This will provide for a greater amount of taxpayers to qualify for this tax relief. States will need to announce whether they will follow this guidance.
#taxes #unemploymentbenefits #americanrescueplan

Tuesday, March 30, 2021