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WASHINGTON, May 18 The Congressional Research Service issued the following report on May 16, 2022, entitled "Taxing Unemployment Insurance Benefits: Federal- and State-Level Tax Treatment During the COVID-19 Pandemic" by income security specialists Julie M. Whittaker and Katelin P. Isaacs. A special provision allowed up to $10,200 of UI benefits paid in 2020.
After two years and thousands of dollars in credit card debt, Falicia Block still has little of the unemployment aid promised to thousands when the pandemic shut down her hair stylist practice for nearly ten weeks beginning in March 2020.
The U.S. Department of Labor issued a guidance letter to state unemployment agencies stating they should expand jobless waivers to thousands of people and absolve those who received overpayments due to state error.
The U.S. Department of Labor has directed state unemployment agencies to expand overpayment waivers to jobless claimants who were not "able and available" to work during the pandemic.