Re: Taxation after first 10k only again?

Taxation after first 10k only again?

For tax year 2020, the first $10k of UI was not taxed per the CARES Act (I believe).

Will that be the same for the 2021 tax year?

posted

That will depend on Congress. If they decide to pass another law waiving tax on unemployment let's all hope they do it BEFORE tax season begins instead of in the middle of the 2021 ax season----which has caused this to be the worst tax season EVER.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Hi Jenga209jenga209,

Unfortunately the IRS has not issued any definitive guidance on whether or not the unemployment tax relief would extend to tax year 2021. As CNBC reports, the consensus of financial experts seems to indicate it may not.

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