Unemployment Tax Free 2020. New exclusion of up to $10,200 of unemployment compensation. I received unemployment in 2020 and didn't have any tax withheld because i needed all the cash.
Depending on your tax bracket, this tax break could mean $1,200 or more in taxes saved on your 2020 return. President joe biden signed the $1.9 trillion covid relief bill on march 11. Amazing value file a premium federal tax return for free.
The legislation excludes only 2020 unemployment.
Specifically, the first $10,200 of 2020 unemployment compensation or as much as $20,400 if your spouse also received unemployment is now tax free. Let’s recap what we know. Lawmakers are currently asking the irs if it’s possible to automatically make adjustments and issue a refund if you’ve already filed your 2020 return. I received unemployment in 2020 and didn't have any tax withheld because i needed all the cash.
