Unemployment Tax Free 2020. The third stimulus package makes up to $10,200 of your unemployment benefits tax free. Specifically, the first $10,200 of 2020 unemployment compensation or as much as $20,400 if your spouse also received unemployment is now tax free.
The recently passed american rescue plan act makes part of your unemployment benefits free from federal taxation. Specifically, the first $10,200 of 2020 unemployment compensation or as much as $20,400 if your spouse also received unemployment is now tax free. If you paid taxes on unemployment benefits you received in 2020, you could be owed an additional refund from the irs.
The new tax exemption only applies to unemployment benefits received in 2020.
Under this new law, the taxpayer may exclude up to $10,200 of unemployment. Here’s what you need to know. The recently passed american rescue plan now makes part of your unemployment benefits free from federal taxation. The new tax exemption only applies to unemployment benefits received in 2020.