Do You Have To Pay Back Unemployment In Taxes
If you've been laid off or furloughed because of the coronavirus pandemic, you may be eligible for unemployment benefits. But what happens when it's time to file your taxes? Will you have to pay back unemployment in taxes?
Generally, unemployment benefits are considered taxable income. So, if you received unemployment benefits in 2020, you'll need to report them on your 2020 tax return.
However, there is some good news. The CARES Act, which was enacted in March 2020 in response to the pandemic, provides some relief for those who are receiving unemployment benefits.
Under the CARES Act, up to $10,200 of unemployment benefits received in 2020 will be exempt from federal income taxes.
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