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Did you receive unemployment in 2020? Did you properly file that as unemployment income when you did your taxes? If so, then you did the right thing. However, in mid-March 2021, President Biden signed The American Rescue Plan. As a result, you may receive up to $10,200 in unemployment tax breaks. Learn more about this here.
What Is The American Rescue Plan?
The American Rescue Plan is part of a nearly $2 trillion pandemic relief bill that President Biden signed in March 2021. Typically, when you receive unemployment, you pay taxes on those funds. However, the COVID-19 pandemic led to unprecedented levels of unemployment. Biden signed that plan to waive taxes on some of that unemployment income. In other words, it’s a means to reduce taxes paid on unemployment in 2020.