February 8, 2021
Workers who didn t withhold taxes from their unemployment benefits could have a bigger tax bill than they would normally.
SHOW TRANSCRIPT
In 2020, the U.S. saw widespread joblessness and business closures making tax prep this year a bit complicated.
I’m not an expert, but we spoke with a lot of them, and asked: Will unemployment benefits be taxed? The simple answer is yes, said Mark Steber, chief tax information officer at Jackson Hewitt.
However, this only applies to people who didn’t choose to have taxes withdrawn from their benefits. Typically, not withdrawing doesn’t add up to a big tax bill. But this year could be different.
February 1, 2021
SHOW TRANSCRIPT
Tax season is upon us. But nearly a year into the COVID-19 pandemic, there are plenty of questions about how to file.
I’m not an expert, but we talked to lots of them, and asked: Will the stimulus checks be taxed?
“The stimulus payment itself is not taxable, said Kemberley Washington, tax analyst with Forbes Advisor.
The checks are considered tax credits not income which is why they aren’t taxable. But there’s a reason you should report it when you file this year.
“If something got missed during the year, like the economic impact payments, you can make up for that on your tax return, said Mark Steber, chief tax information officer at Jackson Hewitt.