From D.C. Councilmember Elissa Silverman (center) is expected to introduce a bill that would exempt unemployment benefits from D.C. income taxes next year. Suzannah Hoover for /WAMU/DCist
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toggle caption Suzannah Hoover for /WAMU/DCist
D.C. residents forced out of work suddenly by COVID-19 could be in for another unpleasant surprise this year: a large tax bill.
That s because unemployment benefits the sole source of income for many city residents during the crisis are not exempt from federal or D.C. income taxes. Come April 15, recipients who didn t opt to withhold taxes from their benefits will have to pay a tax bill they may not have planned for.