Unemployment

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Topic Author
rockylou
Posts: 171
Joined: Sat Feb 23, 2013 3:31 pm

Unemployment

Post by rockylou »

I realize that a portion of unemployment benefits for 2020 are not taxable; however, my daughter received benefits for 2020 in January 2021 as the employer had fought her application and she won on appeal. The benefits went back to August 2020. I assume she will have to pay taxes since she didn’t get the money until 2021. Does any one have any idea about this? Thanks
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FiveK
Posts: 15691
Joined: Sun Mar 16, 2014 2:43 pm

Re: Unemployment

Post by FiveK »

Yes, money received in 2021 will likely be taxed in 2021.

If she is using the ACA for health insurance, receiving unemployment (any amount) in 2021 provides favorable treatment for her premium tax credit.
oldfatguy
Posts: 1434
Joined: Tue Feb 27, 2018 12:38 pm

Re: Unemployment

Post by oldfatguy »

Agreed. UC is taxed in the year it is received, just like wages are.
Topic Author
rockylou
Posts: 171
Joined: Sat Feb 23, 2013 3:31 pm

Re: Unemployment

Post by rockylou »

Thanks for the replies, I thought so but hoped a way around it
Nyc10036
Posts: 1663
Joined: Wed Oct 05, 2016 6:29 pm

Re: Unemployment

Post by Nyc10036 »

She will get a 1099-G from the state. I did for 2020 and will for 2021.

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niagara_guy
Posts: 1165
Joined: Tue Feb 11, 2020 7:32 am

Re: Unemployment

Post by niagara_guy »

if this involves a significant amount of money I would consult with a tax advisor.
Topic Author
rockylou
Posts: 171
Joined: Sat Feb 23, 2013 3:31 pm

Re: Unemployment

Post by rockylou »

Thanks
Thegame14
Posts: 1879
Joined: Mon May 07, 2018 11:53 am

Re: Unemployment

Post by Thegame14 »

rockylou wrote: Thu Apr 22, 2021 7:15 am I realize that a portion of unemployment benefits for 2020 are not taxable; however, my daughter received benefits for 2020 in January 2021 as the employer had fought her application and she won on appeal. The benefits went back to August 2020. I assume she will have to pay taxes since she didn’t get the money until 2021. Does any one have any idea about this? Thanks
income taxes are filed on a cash basis so it doesnt matter when they benefit was earned only when it was received. So that is 2021 income.
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