HATTIESBURG, Miss. (WHLT) – More Americans than ever before received unemployment due to the covid-19 pandemic. They will all have to claim those unemployment benefits on their tax returns this year.
Unemployment is seen as taxable income therefor those who received unemployment will have to file that on their taxes, this includes the $600 they received as apart of the Cares act, that is seen as additional unemployment compensation according to Senior Tax Research Analyst at H&R Block, Jessica Thomas. Unemployed Tax payers will have to fill out a 1099G in addition to the normal 1040 document tax payers usually complete.
Credits tax payers may be allowed to take will aid them in alleviating their tax liability and keep some of their return in their pockets. If a tax payer opts for a standard deduction, they will be eligible to take a charitable deduction up to the amount of $300 to balance their checkbooks if needed. Other benefits allow some tax payer to take money out of their retirement fund early.