Unemployment
Unemployment
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
Re: Unemployment
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.
If she is using the ACA for health insurance, receiving unemployment (any amount) in 2021 provides favorable treatment for her premium tax credit.
Re: Unemployment
Agreed. UC is taxed in the year it is received, just like wages are.
Re: Unemployment
Thanks for the replies, I thought so but hoped a way around it
Re: Unemployment
She will get a 1099-G from the state. I did for 2020 and will for 2021.
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Re: Unemployment
if this involves a significant amount of money I would consult with a tax advisor.
Re: Unemployment
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.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