Direct stimulus payments are not taxed, but unemployment payments are. Author: Leona Dunn (WZZM13) Updated: 7:31 PM EST January 5, 2021
MICHIGAN, USA Many Viewers had questions about what the 2020 recession would mean for the upcoming tax season. So we reached out to a local CPA to try and supply some answers.
We spoke to Chris Harper, an Instructor of Accounting for Grand Valley State University at the Seidman College of Business and the Education Director for Hungerford Nichols CPAs + Consultants, about how individual forms of stimulus fit into the tax code.
Q & A With A CPA
Leona Dunn (D): Okay, so, tax questions that people are asking us. The first one being, how will filing unemployment last year affect this year s tax returns.