If you're one of the millions of Americans receiving unemployment benefits, you can take steps now to avoid a nasty surprise on your tax bill next year. (via CNBCMakeIt)
that the national average weekly payment was $387 prior to the coronavirus pandemic. But that varies widely by state. Mississippi, for example, paid an average of $215 per week, while those in Massachusetts received $550 per week, on average.
Under the new rules, unemployed Americans are now getting an average weekly unemployment benefit of close to $1,000. But that money is considered taxable income, even the new $600 boost. While you don't have to pay Social Security or Medicare taxes —— while receiving unemployment benefits, you do have to pay federal income taxes and state taxes in some jurisdictions.
Some states, however, waive income taxes on unemployment checks. If you live in California, Montana, New Jersey, Oregon, Pennsylvania and Virginia, your unemployment benefits are tax-exempt. Additionally, seven states —Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming — do not levyYou're not required to have taxes withheld from your unemployment benefits check. But experts say it's a good idea to go ahead and do so.
"Usually unemployment benefits are only a couple hundred bucks a week," Stettner says, so it might feel easy to rationalize taking the money now and when you get back to work you'll increase your deductions. But with these very generous unemployment benefits, that mindset could be a substantial liability, he says.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
What you need to know about the coronavirus right nowHere's what you need to know about the coronavirus right now:
Lire la suite »
What you need to know about the coronavirus right nowHere's what you need to know about the coronavirus right now:
Lire la suite »
A Working Parent’s Guide To Paid Family Leave In The Families First Coronavirus Response ActHere's what working parents should know about expanded paid family leave during the Covid-19 crisis:
Lire la suite »