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Syracuse, NY – The $ 900 billion Covid relief package passed by Congress in December provides an additional $ 300 in unemployment benefits for 11 weeks.
If you are unemployed – or will be in the next 11 weeks – you don’t have to do anything to get the extra $ 300. You will get it automatically in your weekly unemployment payment.
But will you have to pay taxes on that $ 300 unemployment premium? Unfortunately, the answer is yes, you will.
Federal governments and states like New York that impose income taxes treat unemployment benefits as income. You will therefore need to report all of your unemployment benefits, including the additional $ 300, as income when you file your 2020 income tax returns.
The good news is that if you’ve told the State Department of Labor to withhold taxes from your unemployment payments (as you should have), you shouldn’t be hit with a big tax bill on those payments when you file your unemployment benefits. tax returns.
Rick Moriarty covers business news and consumer issues. Do you have a tip, a comment or a story idea? Contact him at any time: E-mail | Twitter | Facebook | 315-470-3148
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