Feb 22, 2021
LANSING, Mich. Michigan residents who collected state unemployment benefits last year will not be required to pay penalty and interest related to underpaid estimated tax payments, according to the Michigan Department of Treasury.
Effective immediately, the state Treasury Department has granted an automatic waiver of all penalties and interest related to underpaid estimated tax payments owed by taxpayers who received unemployment benefits in 2020.
Under state law, taxpayers are required to pay quarterly estimated tax payments when the annual tax due is expected to exceed $500 or more. Taxpayers who fail to pay an estimated quarterly tax payment are typically subject to penalties and interest.
If you withdraw money from your traditional Individual Retirement Account (IRA) before age 59½, you ll likely face a penalty. After all, IRAs were designed as a tax-advantaged way to encourage individuals to save for retirement. One way to persuade people to keep the funds intact is by making it painful to withdraw them before they reach retirement or at least, retirement age.
Following that reasoning, the IRS imposes a 10% penalty (plus income tax in most cases) on early withdrawals, as it dubs funds taken out by those under 59½.
However, there are exceptions. The IRS names certain hardship provisions that allow you to take your money out of your IRA early without paying the 10% penalty. You must meet specific circumstances to make these hardship withdrawals.
Michigan residents who received unemployment benefits last year will not have to pay a penalty due to errors related to their tax payments. The Michigan
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