Unemployment Tax Free $10 200. This is a retroactive move, meaning it changes the rules about how something is taxed after the fact. If you claimed unemployment last year but filed your taxes before the new $10,200 unemployment tax break was announced, the irs says you can expect an automatic refund starting in may, if you qualify.
The exemption only applies to tax filers who made less than $150,000 last year, whether they are filing as single or married. For married couples, this amount would be $20,400. This is a retroactive move, meaning it changes the rules about how something is taxed after the fact.
The new tax break is an exclusion — workers exclude up to $10,200 in jobless benefits from their 2020 taxable income.
If you claimed unemployment last year but filed your taxes before the new $10,200 unemployment tax break was announced, the irs says you can expect an automatic refund starting in may, if you qualify. You may get a $10,200 tax break from the irs. Many people didn't withhold taxes from their unemployment checks, so they're still looking at paying whatever taxes they might owe on unemployment benefits that. Unemployment benefits are generally treated as income for tax purposes.